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Epic Cash AMA Recap with CryptoDiffer Community

CryptoDiffer team Hello, everyone! We are glad to meet here: Max Freeman (@maxfreeman4), Project Lead at Epic Cash Yoga Dude (@Yogadude), PR&Marketing at Epic Cash Xenolink (@Xenolink), Advisor at Epic Cash
Max Freeman Project Lead at Epic Cash Thanks Max, we are excited to be here!
Yoga Dude PR&Marketing at Epic Cash Hello Everyone! Thank you for having us here!
Xenolink Advisor at Epic Cash Thank you to the CryptoDiffer team and CryptoDiffer community for hosting us!
CryptoDiffer team Let`s start from the first introduction question: Q1: Can you introduce yourself to the community? What is your background and how did you join Epic Cash?
Yoga Dude PR&Marketing at Epic Cash
Hello! My background is Marketing and Business Development, I’ve been in crypto since 2011 started with Bitcoin, then Monero in 2014, Ethereum in 2015 and at some point Doge for fun and profit. I joined Epic Cash team in September 2019 handling PR and Marketing.
I saw in Epic Cash what was missing in my previous cryptos — things that were missing in Bitcoin and Monero especially.
Xenolink Advisor at Epic Cash
Hello Cryptodiffer Community, I am not an original co-founder nor am I a developer for the Epic Cash project. I am however a community member that is involved in helping scale this project to higher levels. One of the many beauties of Epic Cash is that every single member in the community has the opportunity to be part of EPIC’s team, it can be from development all the way to content producing. Epic Cash is a community driven project. The true Core Team of Epic Cash is our community. I believe a community that is the Core Team is truly powerful. EPIC Cash has one of the freshest and strongest communities I have seen in quite a while. Which is one of the reasons why I became involved in this project. Epic displayed some of the most self community produced content I have seen in a project. I’m actually a doctor of medicine but in terms of my experience in crypto, I have been involved in the industry since 2012 beginning with mining Litecoin. Since then I have been doing deep dive analysis on different projects, investing, and building a network in crypto that I will utilize to help connect and scale Epic in every way I can. To give some credit to those people in my network that have been a part of helping give Epic exposure, I would like to give a special thanks to u/Tetsugan and u/Saurabhblr. Tetsugan has been doing a lot of work for the Japanese community to penetrate the Japanese market, and Japan has already developed a growing interest in Epic. Daku Sarabh the owner and creator of Crypto Daku Robinhooders, I would like to thank him and his community for giving us one of our first large AMA’s, which he has supported our project early and given us a free AMA. Many more to thank but can’t be disclosed. Also thank you to all the Epic Community leaders, developers, and Content producers!
Max Freeman Project Lead at Epic Cash
I’m Max Freeman, which stands for “Maximum Freedom for Mankind”. I started working on the ideas that would become Epic in 2018. I fell in love with Bitcoin in 2017 but realized that it needs privacy at the base layer, fungibility, better scalability in order to go to the next level.
CryptoDiffer team
Really interesting backgrounds I must admit, pleasure to see the team that clearly has one vision of the project by being completely decentralized:)
Q2: Can you briefly describe what is Epic Cash in 3–5 sentences? What technology stands behind Epic Cash and why it’s better than the existing one?
Max Freeman Project Lead at Epic Cash
I’d like to highlight the differences between Epic and the two highest-valued privacy coin projects, Monero and Zcash. XMR has always-on privacy like Epic does, but at a cost: Its blockchain is over 20x more data intensive than Epic, which limits its possibilities for scalability. Epic’s blockchain is small and light enough to run a full node on cell phones, something that is in our product road map. ZEC by comparison can’t run on low end devices because of its zero knowledge based approach, and only 1% of transactions are fully private. Epic is simply newer, more advanced technology than prior networks thanks to Mimblewimble
We will also add more algorithms to widen the range of hardware that can participate in mining. For example, cell phones and tablets based around ARM chips. Millions of people can mine Epic that can’t mine Bitcoin, and that will help grow the network rapidly.
There are some great short videos on our YouTube channel https://www.youtube.com/channel/UCQBFfksJlM97rgrplLRwNUg/videos
that explain why we believe we have created something truly special here.
Our core architecture derives from Grin, so we are fortunate to benefit on an ongoing basis from their considerable development efforts. We are focused on making our currency truly usable and widely available, beyond a store of value and becoming a true medium of exchange.
Yoga Dude PR&Marketing at Epic Cash
Well we all have our views, but in a nutshell, we offer things that were missing in the previous cryptos. We have sound fiscal emission schedule matching Bitcoin, but we are vastly more private and faster. Our blockchain is lighter than Bitcoin or Monero and our tech is more scalable. Also, we are unique in that we are mineable with CPUs and GPUs as well as ASICs, giving the broadest population the ability to mine Epic Cash. Plus, you can’t forget FUNGIBILITY 🙂 we are big on that — since you can’t have true privacy without fungibility.
Also, please understand, we have HUGE respect to all the cryptos that came before us, we learned a lot from them, and thanks to their mistakes we evolved.
Xenolink Advisor at Epic Cash
To add on, what also makes Epic Cash unique is the ability to decentralize the mining using a tri-algo model of Random X (CPU), Progpow (GPU), and Cuckoo (ASIC) for an ability to do hybrid mining. I believe this is an issue we can see today in Bitcoin having centralized mining and the average user has a costly barrier of entry.
To follow up on this one in my opinion one of the things we adopted that we have seen success for , in example Bitcoin and Monero, is a strong community driven coin. I believe having a community driven coin will provide a more organic atmosphere especially when starting with No ICO, or Premine with a fair distribution model for everyone.
CryptoDiffer team
Q3: What are the major milestones Epic Cash has achieved so far? Maybe you can share with us some exciting plans for future weeks/months?
Yoga Dude PR&Marketing at Epic Cash
Since we went live in September of 2019, we attracted a very large community of users, miners, investors and contributors from across the world. Epic Cash is a very international project with white papers translated into over 30 languages. We are very much a community driven project; this is very evident from our content and the amount of translations in our white papers and in our social media content.
We are constantly working on improving our usability, security and privacy, as well as getting our message and philosophy out into the world to achieve mass adoption. We have a lot of exciting plans for our project, the plan is to make Epic Cash into something that is More than Money.
You can tell I am the Marketing guy since my message is less about the actual tech and more about the usability and use cases for Epic Cash, I think our Team and Community have a great mix of technical, practical, social and fiscal experiences. Since we opened our YouTube channels content for community submissions, we have seen our content translated into Spanish, French, German, Polish, Chinese, Japanese, Arabic, Russian, and other languages
Max Freeman Project Lead at Epic Cash
Our future development roadmap will be published soon and includes 4 tracks:
Usability
Mining
Core Protocol
Ecosystem Development
Core Protocol
Epic Server 2.9.0 — this release improves the difficulty adjustment and is aimed at making block emission closer to the target 60 seconds, particularly reducing the incidence of extremely short and long blocks — Status: In Development (Testing) Anticipated Release: June 2020
Epic Server 3.0.0 — this completes the rebase to Grin 3.0.0 and serves as the prerequisite to some important functional building blocks for the future of the ecosystem. Specifically, sending via Tor (which eliminates the need to open ports), proof of payment (useful for certain dex applications e.g. Bisq), and our native mobile app. Status: In Development (Testing) Anticipated Release: Fall 2020
Non-Interactive Transactions — this will enhance usability by enabling “fire and forget” send-to-address functionality that users are accustomed to from most cryptocurrencies. Status: Drawing Board Anticipated Release: n/a
Scaling Options — when blocks start becoming full, how will we increase capacity? Two obvious options are increasing the block size, as well as a Lightning Network-style Layer 2 structure. Status: Drawing Board Anticipated Release: n/a
Confidential Assets — Similar to Raven, Tari, and Beam, the ability to create independently tradable assets that ride on the Epic Blockchain. Status: Drawing Board Anticipated Release: n/a
Usability
GUI Wallet 2.0 — Restore from seed words and various usability enhancements — Status: Needs Assessment Anticipated Release: Fall 2020
Mobile App — Native mobile experience for iOS and Android. Status: In Development (Testing) Anticipated Release: Winter 2020
Telegram Integration — Anonymous payments over the Telegram network, bot functionality for groups. Status: Drawing Board Anticipated Release: n/a
Mining
RandomX on ARM — Our 4th PoW algorithm, this will enable tablets, cell phones, and low power devices such as Raspberry Pi to participate in mining. Status: Needs Assessment Anticipated Release: n/a
The economics of mining Epic are extremely compelling for countries that have free or extremely cheap electricity, since anyone with an ordinary PC can mine. Individual people around the world can simply run the miner and earn meaningful money (imagine Venezuela for example), something that has not been possible since the very early days of Bitcoin.
Ecosystem Development
Atomic Swaps — Connecting Epic to other blockchains in a trustless way, starting with ETH so that Epic can trade on DeFi infrastructure such as Uniswap, Kyber, etc. Status: Drawing Board Anticipated Release: n/a
Xenolink Advisor at Epic Cash
From the Community aspect, we have been further developing our community international reach. We have been seeing an increase in interest from South America, China, Russia, Japan, Italy, and the Philippines. We are working on targeting more countries. We truly aim to be a decentralized project that is open to everyone worldwide.
CryptoDiffer team
Great, thank you for your answers, we now can move to community questions part!
Cryptodiffer Community
You have 3 mining algorithms, the question is: how do they not compete with each other? Is there any benefit of mining on the GPU and CPU if someone is mining on the ASIC?
Max Freeman Project Lead at Epic Cash
The block selection is deterministic, so that every 100 blocks, 60% are for RandomX (CPU), 38% for ProgPow (GPU), and 2% for Cuckoo (ASIC) — the policy is flexible so that we can have as many algorithms with any percentages we want. The goal is to make the most decentralized and resilient network possible, and with that in mind we are excited to work on enabling tablets and cell phones to mine, since that opens it up to millions of people that otherwise can’t take part.
Cryptodiffer Community
To Run a project smoothly, Funding is very important, From where does the Funding/revenue come from?
Xenolink Advisor at Epic Cash
Yes, early on this was realized and in order to scale a project funds are indeed needed. Epic Cash did not start with any funding and no ICO and was organically genesis mined with no pre-mine. Epic cash is also a nonprofit community driven project similar to Monero. There is no profit-driven entity in the picture. To overcome the revenue issue Epic Cash setup a development fund tax that decreases 1% every year until 2028 when Epic Cash reaches singularity with Bitcoin emissions. Currently it is at 7.77%. This will help support the scaling of the project.
Cryptodiffer Community
Hi! In your experience working also with MONERO can you please clarify which are those identified problems that EPIC CASH aims to develop and resolve? What’s the main advantage that EPIC CASH has over MONERO? Thank you!
Yoga Dude PR&Marketing at Epic Cash
First, I must admit that I am still a huge fan and HODLer of Monero. That said:
✅ our blockchain is MUCH lighter than Monero’s
✅ our transaction processing speed is much faster
✅ our address-less blockchain is more private
✅ Epic Cash can be mined with CPU (RandomX) GPU (ProgPow) and Cuckoo, whereas Monero migrated to RandomX and currently only mineable with CPU
Cryptodiffer Community
  1. the feature ‘Cut Through’ deletes old data, how is it decided which data will be deletes, and what are the consequences of it for the platform and therefore the users?
  2. On your website I see links to download Epic wallet and mining software for Linux,Windows and MacOs, I am a user of android, is there a version for me, or does it have a release date?
Max Freeman Project Lead at Epic Cash
  1. This is one of the most exciting features of Mimblewimble, which is its extraordinary ability to compress blockchain data. In Bitcoin, the entire history of a coin must be replayed every time it is spent, and comprehensive details are permanently stored in the blockchain. Epic discards spent transaction inputs and consolidates outputs, storing neither addresses or amounts, only a tiny kernel to allow sender and receiver to prove their transaction.
  2. The Vitex mobile app is great for today, and we have a native mobile app for iOS and Android in the works as well.
Cryptodiffer Community
$EPIC Have total Supply of 21,000,000 EPIC , is there any burning plan? Or Buyback program to maintain $EPIC price in the future?
Who is Epic Biggest competitors?
And what’s makes epic better than competitors?
Xenolink Advisor at Epic Cash
We respect the older generation coins like Bitcoin. But we have learned that the supply economics of Bitcoin is very sound. Until today we can witness how the Bitcoin is being adopted institutionally and by retail. We match the 21 million BTC supply economics because it is an inelastic fixed model which makes the long-term economics very sound. To have an elastic model of burning tokens or printing tokens will not have a solid economic future. Take for example the USD which is an inflating supply. In terms of competitors we look at everyone in crypto with respect and also learn from everyone. If we had to compare to other Mimblewimble tech coins, Grin is an inelastic forever inflating supply which in the long term is not sound economics. Beam however is an inelastic model but is formed as a corporation. The fair distribution is not there because of the permanent revenue model setup for them. Epic Cash a non-profit development tax fund model for scaling purposes that will disappear by 2028’s singularity.
Cryptodiffer Community
What your plans in place for global expansion, are you focusing on only market at this time? Or focus on building and developing or getting customers and users, or partnerships?
Yoga Dude PR&Marketing at Epic Cash
Since we are a community project, we have many developers, in addition to the core team.
Our plans for Global expansion are simple — we have advocates in different regions addressing their audiences in their native languages. We are growing organically, by explaining our ideology and usability. The idea is to grow beyond needing a fiat bridge for crypto use, but to rather replace fiat with our borderless, private and fungible crypto so people can use it to get goods and services without using banks.
We are not limiting ourselves to one particular demographic — Epic Cash is a valid solution for the gamers, investors, techie and non techie people, and the unbanked.
Cryptodiffer Community
EPIC confidential coin! Did you have any problems with the regulators? And there will be no problems with listing on centralized exchanges?
Xenolink Advisor at Epic Cash
In terms of structure, we are carefully set up to minimize these concerns. Without a company or investors in the picture, and having raised no funds, there is little scope to attack in terms of securities laws. Bitcoin and Ethereum are widely acknowledged as acceptable, and we follow in their well-established footprints in that respect. Centralized exchanges already trade other privacy coins, so we don’t see this as much of an issue either. In general, decentralized p2p exchange options are more interesting than today’s centralized platforms. They are more censorship resistant, secure, and privacy-protecting. As the technology gets better, they should continue to gain market share and that’s why we’re proud to be partnered with Vitex, whose exchange and mobile app work very well.
Cryptodiffer Community
What are the main utility and real-life usage of the #EPIC As an investor, why should we invest in the #EPIC project as a long-term investment?
Max Freeman Project Lead at Epic Cash
Because our blockchain is so light (only 1.16gb currently, and grows very slowly) it is naturally well suited to become a decentralized mobile money standard because people can run a full node on their phone, guaranteeing the security of their funds. Scalability in Bitcoin requires complicated and compromised workarounds such as Lightning Network and light clients, and these problems are solved in Epic.
With our forthcoming Mobile Mining app, hundreds of millions of cell phones and tablets will be able to easily join the network. People can quickly and cheaply send money to one another, fulfilling the long-envisioned promise of P2P electronic cash.
As an investor, it’s important to ask a few key questions. Bitcoin Standard tokenomics of disinflation and a fixed supply are well proven over a decade now. We follow this model exactly, with a permanently synchronized supply from 2028, and 4 emission halvings from now until then, with our first one in about two weeks. Beyond that, we can apply some simple logical tests. What is more valuable, money that can only be used in some cases (censorable Bitcoin based on a lack of fungibility) or money that can be used universally? (fungible Epic based on always-on privacy by default). Epic is also poised to be a more decentralized and therefore resilient network because of wider participation in mining. Epic is designed to be Bitcoin++ Privacy, Fungibility, Scalability
Cryptodiffer Community
Q1. What are advantages for choosing three mining algorithms RandomX+, ProgPow and CuckAToo31+ ?
Q2. Beam and Grin use MimbleWimble protocol, so what are difference for Epic? All of you will be friends for partners or competitors?
Max Freeman Project Lead at Epic Cash
RandomX and ProgPow are designed to use the entirety of a CPU / GPU’s unique processing capabilities in a way that other types of hardware don’t work as well. You can run RandomX on a GPU but it doesn’t work nearly as well as a much cheaper CPU, for example. Cuckoo is a “memory hard” algorithm that widens the range of companies that can produce the hardware.
Grin and Beam are great projects and we’ve learned a lot from them. We inherited our first codebase from Grin’s excellent Rust design, which is a better language for community participation than C++ that Beam currently uses.
Functionally, Mimblewimble is similar across the 3 coins, with standard Confidential Transactions, CoinJoin, Dandelion++, Schnorr Signatures and other advanced features. Grin is primarily ASIC-targeted, Beam is GPU-targeted, and Epic is multi-hardware.
The biggest differences though are in tokenomics and project structure. Grin has permanent inflation of 60 coins per block with no halvings, which means steady erosion of value over time due to new supply pressure. It also lacks a steady funding model, making future development in jeopardy, particularly as the per coin price falls. Beam has a for-profit model with heavy early inflation and a high developer tax. Epic builds on the strengths of these earlier mimblewimble projects and addresses the parts that could be improved.
Cryptodiffer Community Some privacy coin has scalability issues! How Epic cash will solve scalability issues? Why you choose randomX consensus algorithem?
Xenolink Advisor at Epic Cash
Fungibility means that you can’t distinguish one unit of currency from another, in example Gold. Fungibility has recently become a hot issue as people have been noticing Bitcoins being locked up by exchanges which may of had a nefarious history which are called Tainted Coins. In example coins that have been involved in a hack, darknet market transactions, or even processing coin through a mixer. Today we can already see freshly mined Bitcoins being sold at a premium price to avoid the fungibility problem Bitcoin carries today. Bitcoin can be tracked by chainalysis and is not a fungible cryptocurrency. One of the features that Epic has is privacy with added fungibility, because of Mimblewimble technology, Epic has no addresses recorded and therefore nothing can be tracked by chainalysis. Below I provide a link of an example of what the lack of fungibility is resulting in today with Bitcoin. One of the reasons why we chose the Random X algo. is because of the easy barrier of entry and also to further decentralize the mining. Random X algo can be mined on old computers or laptops. We also have 2 other algos Progpow (GPU), and Cuckoo (ASIC) to create a wider decentralization of mining methods for Epic.
Cryptodiffer Community
I’m a newbie in crypto and blockchain so how will Epic Cash team target and educate people who don’t know about blockchain and crypto?
What is the uniqueness of Epic Cash that cannot be found in other project that´s been released so far ?
Yoga Dude Pr&Marketing at Epic Cash
Actually, while we have our white paper translated into over 30 languages, we are more focused on explaining our uses and advantages rather than cold specs. Our tech is solid, but we not get hung up on pure tech talk which most casual users do not need to or care to understand. As long as our fundamentals and tech are secure and user friendly our primary goal is to educate about use cases and market potential.
The uniqueness of Epic Cash is its amalgamation of “whats good” in other cryptos. We use Mimblewimble for privacy and anonymity. Our blockchain is much lighter than our competitors. We are the only Mimblewimble crypto to use a unique cocktail of mining algorithms allowing to be mined by casual miners with gaming rigs and laptops, while remaining friendly to GPU and CPU farmers.
The “uniqueness” is learning from the mistakes of those who came before us, we evolved and learned, which is why our privacy is better, we are faster, we are fungible, we offer diverse mining and so on. We are the best blend — thats powerful and unique
Cryptodiffer Community
Can you share EPIC’s vision for decentralized finance (DEFI)? What features do EPIC have to support DEFI?
Yoga Dude PR&Marketing at Epic Cash
We view Epic as ideally suited to be the decentralized digital reserve asset of the new Private Internet of Money that’s emerging. At a technology level, atomic swaps can be created to build liquidity bridges so that wrapped Epic tokens (like WBTC, WETH) can trade on other networks as ERC20, BEP2, NEP5, VIP180, Algorand and so on. There is more Bitcoin value locked on Ethereum than in Lightning Network, so we will similarly integrate Epic so that it can trade on networks such as Uniswap, Kyber, and so on.
Longer term, if there is market demand for it, thanks to Scriptless Script functionality our blockchain has, we can build “Confidential Assets” (which Raven, Tari, and Beam are all also working on) that enable people to create tokenized assets in a private way.
Cryptodiffer Community
If you could choose one celebrity to promote Epic-cash, who that would be?
Max Freeman Project Lead at Epic Cash
I am a firm believer that the strength of the project lies in allowing community members to become their own celebrities, if their content is good enough the community will propel them to celebrity status. Organic celebrities with small but loyal following are vastly more beneficial than big name professional shills with inflated but non caring audiences.
I remember the early days of Apple when an enthusiastic dude named Guy Kawasaki became Apple Evangelist, he was literally going around stores that sold Apple and visited user groups and Evangelized his belief in Apple. This guy became a Legend and helped Apple become what it is today.
Epic Cash will have its OWN Celebrities
Cryptodiffer Community
How does $EPIC solve scalability of transactions? Current blockchains face issues with scalability a lot, how does $EPIC creates a solution to it?
Xenolink Advisor at Epic Cash
Epic Cash is utilizing Mimblewimble technology. Besides the privacy & fungibility aspect of the tech. There is the scalability features of it. It is implemented into Epic by transaction cut-through. Which means it allows nodes to remove all intermediate transactions, thus significantly reducing the blockchain size without affecting its validation. Mimblewimble also does not use addresses like a BTC address, and amount of transactions are also not recorded. One problem Monero and Bitcoin are facing now is scalability. It is evident today that data is getting more expensive and that will be a problem in the long run for those coins. Epic is 90% lighter and more scalable compared to Monero and Bitcoin.
Cryptodiffer Community
what are the ways that Epic Cash generates profits/revenue to maintain your project and what is its revenue model ? How can it make benefit win-win to both invester and your project ?
Max Freeman Project Lead at Epic Cash
There is a block subsidy of 7.77% that declines 1.11% per year until 0, where it stays after that. As a nonprofit community effort, this extremely modest amount goes much further than in other projects, which often take 20, 30, even 50+ % of the coin supply. We believe that this ongoing funding model best aligns the long term incentives for all participants and balances the compromises between the ends of the centralized/decentralized spectrum of choices that any project must make.
Cryptodiffer Community
Q1 : What are your major goals to archive in the next 3–4 years?
Q2 : What are your plans to expand and gain more adoption?
Yoga Dude Pr&Marketing at Epic Cash
Max already talked about our technical plans and goals in his roadmap. Allow me to talk more about the non technical 😁
We are aiming for broader reach in the non technical more mainstream community — this is a big challenge but we believe it is doable. By offering simpler ways to mine Epic Cash (with smart phones for example), and by doing more education we will achieve the holy grail of crypto — moving past the fiat bridges and getting Epic Cash to be accepted as means of payment for goods and services. We will accomplish this by working with regional advocacy groups, community interaction, off-line promotional activities and diverse social media targeting.
Cryptodiffer Community
It seems to me that EpicCash will have its first Halving, right? Why a halving so soon?
Is a mobile version feasible?
Max Freeman Project Lead at Epic Cash
Our supply emission catches up to that of Bitcoin’s first 19 years after 8 years in Epic, so that requires more frequent halvings. Today’s block emission is 16, next up are 8, 4, 2, and then finally 0.15625. After that, the supply of Epic and that of BTC stay synchronized until maxing out at 21m coins in 2140.
Today we have a mobile wallet through the Vitex app, a native mobile wallet coming, and are working on mobile mining.
Cryptodiffer Community
What markets will you add after that?
Yoga Dude PR&Marketing at Epic Cash
Well, we are aiming to have ALL markets
Epic Cash in its final iteration will be usable by everyone everywhere regardless of their technical expertise. We are not limiting ourselves to the technocrats, one of our main goals is to help the billions of unbanked. We want everyone to be able to mine, buy, and most of all USE Epic Cash — gamers, farmers, soccer moms, students, retirees, everyone really — even bankers (well once we defeat the banking industry)
We will continue building on the multilingual diversity of our global community adding support and advocacy groups in more countries in more languages.
Epic Cash is More than Money and its for Everyone.
Cryptodiffer Community
Almost, all cryptocurrencies are decentralized & no-one knows who owns that cryptocurrencies ! then also, why Privacy is needed? hats the advantages of Private coins?
Max Freeman Project Lead at Epic Cash
With a public transparent blockchain such as Bitcoin, you are permanently posting a detailed history of your money movements open for anyone to see (not just legitimate authorities, either!) — It would be considered crazy to post your credit card or bank statements to Twitter, but that’s what is happening every time you send a transaction that is not private. This excellent video from community contributor Spencer Lambert https://www.youtube.com/watch?v=0blbfmvCq\_4 explains better than I can.
Privacy is not just for criminals, it’s for everyone. Do you want your landlord to increase the rent when he sees that you get a raise? Your insurance company to raise your healthcare costs because they see you buying too much ice cream? If you’re a business, do you want your employees to see how much money their coworkers make? Do you want your competitors to trace your supplier and customer relationships? Of course not. By privacy being default for everyone, cryptocurrency can be used in a much wider range of situations without unacceptable compromises.
Cryptodiffer Community
What are the main utility and real-life usage of the #EPIC As an investor, why should we invest in the #EPIC project as a long-term investment?
Xenolink Advisor at Epic Cash
Epic Cash can be used as a Private and Fungible store of value, medium of exchange, and unit of account. As Epic Cash grows and becomes adopted it can be compared to how Bitcoin and Monero is used and adopted as well. As Epic is adopted by the masses, it can be accepted as a medium of exchange for store owners and as fungible payments without the worry of having money that is tainted. Epic Cash as a store of value may be a good long term aspect of investment to consider. Epic Cash carries an inelastic fixed supply economic model of 21 million coins. There will be 5 halvings which this month of June will be our first halving of epic. From a block reward of 16 Epic reduced to 8. If we look at BTC’s price action and history of their halvings it has been proven and show that there has been an increase in value due to the scarcity and from halvings a reduction of # of BTC’s mined per block. An inelastic supply model like Bitcoin provides proof of the circulating supply compared to the total supply by the history of it’s Price action which is evident in long term charts since the birth of Bitcoin. EPIC Plans to have 5 halvings before the year 2028 to match the emissions of Bitcoin which we call the singularity event. Below is a chart displaying our halvings model approaching singularity. Once bitcoin and cryptocurrency becomes adopted mainstream, the fungibility problem will be more noticed by the general public. Privacy coins and the features of fungibility/scalability will most likely be sought over. Right now a majority of people believe that all cryptocurrency is fungible. However, that is not true. We can already see Chainalysis confirming that they can trace and track and even for other well-known privacy coins today such as Z-Cash.
Cryptodiffer Community
  1. You aim to reach support from a global community, what are your plans to get spanish speakers involved into Epic Cash? And emerging markets like the african
  2. How am I secure I won’t be affected by receiving tainted money?
Max Freeman Project Lead at Epic Cash
Native speakers from our community are working to raise awareness in key markets such as mining in Argentina and Venezuela for Spanish (Roberto Navarro called Epic “the holy grail of cryptocurrency” and Ethiopia and certain North African countries that have the lowest electricity costs in the world. Remittances between USA and Latin American countries are expensive and slow, so Epic is also perfect for people to send money back home as well.
Cryptodiffer Community
Do EPICs in 2020 focus more on research and coding, or on sales and implementation?
Yoga Dude PR&Marketing at Epic Cash
We will definitely continue to work on research and coding, with emphasis on improved accessibility (especially via smartphones) usability, security and privacy.
In terms of financial infrastructure will continuing to add exchanges both KYC and non KYC.
Big part of our plans is in ongoing Marketing and PR outreach. The idea is to make Epic Cash a viral sensation of sorts. If we can get Epic Cash adopters to spread the word and tell their family, coworkers and friends about Epic Cash — there will be no stopping us and to help that happen we have a growing army of content creators, and supporters.
Everyone with skin in the game gets the benefit of advancing the cause.
Folks also, this isn’t an answer to the question but an example of a real-world Epic Cash content —
https://www.youtube.com/watch?v=XtAVEqKGgqY
a challenge from one of our content creators to beat his 21 pull ups and get 100 epics! This has not been claimed yet — people need to step up 🙂 and to help that I will match another 100 Epic Cash to the first person to beat this
Cryptodiffer Community
I was watching some videos explaining how to send and receive transactions in EpicCash, which consists of ports and sending links, my question is why this is so, which, for now, looks complex?
Let’s talk about the economic model, can EpicCash comply with the concept of value reserve?
Max Freeman Project Lead at Epic Cash
In V3, which is coming later this summer, Epic can be sent over Tor, which eliminates this issue of port opening, even though using tools like ngrok.io, it’s not necessarily as painful as directly configuring the router ports. Early Lightning Network had this issue as well and it’s something we have a plan to address via research into non-interactive transactions. “Fire and Forget” payments to an address, as people are used to in Bitcoin, is coming to Epic and we’re excited to develop functionality that other advanced mimblewimble coins don’t yet have. We are committed to constant improvement in usability and utility, to make our money system the ease of use leader.
We are involved in the project (anyone can join the Freeman Family) because we believe that simply by choosing to use a form of money that better aligns with our ideals, that we can make a positive change in the world. Some of my thoughts about how I got involved are here: https://medium.com/epic-cash/the-freeman-family-e3b9c3b3f166
Max Freeman Project Lead at Epic Cash
Huge thanks to our friends Maks and Vladyslav, we welcome everyone to come say hi at one of our friendly communities. It is extremely early in this journey, our market cap is only 0.5m right now, whereas the 3 other mimblewimble coins are at $20m, $30m and $100m respectively. Epic is a historic opportunity to follow in the footsteps of legends such as Bitcoin and Monero, and we hope to become the first Top 5 privacy coin project.
Xenolink Advisor at Epic Cash
Would like to Thank the Cryptodiffer Team and the Cryptodiffer community for hosting us and also engaging with us to learn more about Epic. If anyone else has more questions and wants to know more about EPIC , can find us at our telegram channel at https://t.me/EpicCash .
Yoga Dude Pr&Marketing at Epic Cash
Thank you, CryptoDiffer Team, and this wonderful Community!!!
Cryptodiffer TEAM
Thank you everyone for taking your time and asking great questions
Thank you for your time, it was an insightful session
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Bitcoin 11 Years - Achievements, Lies, and Bullshit Claims So Far - Tooootally NOT a SCAM !!!!

That's right folks, it's that time again for the annual review of how Bitcoin is going: all of those claims, predictions, promises .... how many have turned out to be true, and how many are completely bogus ???
Please post / link this on Bitcoin (I am banned there for speaking the truth, so I cannot do it) ... because it'a way past time those poor clueless mushrooms were exposed to the truth.
Anyway, without further ado, I give you the Bitcoin's Achievements, Lies, and Bullshit Claims So Far ...
.
Bitcoin Achievements so far:
  1. It has spawned a cesspool of scams (2000+ shit coin scams, plus 100's of other scams, frauds, cons).
  2. Many 1,000's of hacks, thefts, losses.
  3. Illegal Use Cases: illegal drugs, illegal weapons, tax fraud, money laundering, sex trafficking, child pornography, hit men / murder-for-hire, ransomware, blackmail, extortion, and various other kinds of fraud and illicit activity.
  4. Legal Use Cases: Steam Games, Reddit, Expedia, Stripe, Starbucks, 1000's of merchants, cryptocurrency conferences, Ummm ????? The few merchants who "accept Bitcoin" immediately convert it into FIAT after the sale, or require you to sell your coins to BitPay or Coinbase for real money, and will then take that money. Some of the few who actually accept bitcoin haven't seen a customer who needed to pay with bitcoin for the last six months, and their cashiers no longer know how to handle that.
  5. Contributing significantly to Global Warming.
  6. Wastes vasts amounts of electricity on useless, do nothing work.
  7. Exponentially raises electricity prices when big miners move into regions where electricity was cheap.
  8. It’s the first "currency" that is not self-sustainable. It operates at a net loss, and requires continuous outside capital to replace the capital removed by miners to pay their costs. It’s literally a "black hole currency."
  9. It created a new way for people living too far from Vegas to gamble all their life savings away.
  10. Spawned "blockchain technology", a powerful technique that lets incompetent programmers who know almost nothing about databases, finance, programming, or blockchain scam millions out of gullible VC investors, banks, and governments.
  11. Increased China's foreign trade balance by a couple billion dollars per year.
  12. Helped the FBI and other law enforcement agents easily track down hundreds of drug traffickers and drug users.
  13. Wasted thousands if not millions of man-hours of government employees and legislators, in mostly fruitless attempts to understand, legitimize, and regulate the "phenomenon", and to investigate and prosecute its scams.
  14. Rekindled the hopes of anarcho-capitalists and libertarians for a global economic collapse, that would finally bring forth their Mad Max "utopia".
  15. Added another character to Unicode (no, no, not the "poo" 💩 character ... that was my first guess as well 🤣)
  16. Provides an easy way for malware and ransomware criminals to ply their trade and extort hospitals, schools, local councils, businesses, utilities, as well as the general population.
.
Correct Predictions:
  1. 2015-12: "1,000 dollar in 2015", u/Luka_Magnotta, aka time traveler from the future, 31-Aug-2013, https://www.reddit.com/Bitcoin/comments/1lfobc/i_am_a_timetraveler_from_the_future_here_to_beg/ (Technically, this prediction is WRONG because the highest price reached in 2015 was $495.56 according to CMC. Yes, Bitcoin reached $1,000 in 2013 and 2014, but that's NOT what the prediction says).
  2. 2017-12: "10,000 in 2017", u/Luka_Magnotta, aka time traveler from the future, 31-Aug-2013, https://www.reddit.com/Bitcoin/comments/1lfobc/i_am_a_timetraveler_from_the_future_here_to_beg/
  3. 2018-04: $10,000 (by April 2018), Mike Novogratz, link #1: https://www.bitcoinprice.com/predictions/, link #2: https://www.bloomberg.com/news/articles/2017-11-21/mike-novogratz-says-bitcoin-will-end-the-year-at-10-000
  4. 2018-12: $10,000 (by 2018), Tim Draper, link #1: https://www.bitcoinprice.com/predictions/, link #2: https://www.youtube.com/watch?v=3AW5s6QkRRY
  5. Any others ? (Please tell me).
.
Bitcoin Promises / Claims / Price Predictions that turned out to be lies and bullshit:
  1. ANONYMOUS
  2. CENSORSHIP RESISTANT
  3. FRICTIONLESS
  4. TRUSTLESS
  5. UNCENSORABLE
  6. UNTRACEABLE
  7. SAFE
  8. SECURE
  9. YOU CANNOT LOSE
  10. NOT A SCAM
  11. PERMISSIONLESS
  12. GUARANTEED PRIVACY
  13. CANNOT BE SEIZED
  14. CANNOT BE CONFISCATED
  15. Be your own bank
  16. Regulation-proof
  17. NO MIDDLEMEN
  18. DECENTRALIZED
  19. Instantaneous transactions
  20. Fast transactions
  21. Zero / No transaction fees
  22. Low transaction fees
  23. A store of value
  24. A deflationary digital asset
  25. "A deflationary digital asset that no single human being can destroy."
  26. "an asset that is equally as dual use as a car, water, or any other traditional element that has existed."
  27. "Digital gold"
  28. Easy to use
  29. Cannot be stolen
  30. Cannot be hacked
  31. Can be mined by anyone
  32. Can be mined by anyone, even with an old computer or laptop
  33. Cannot be centralized
  34. Will return power back to the people.
  35. Not a Ponzi scam
  36. Not a Pyramid scam
  37. Never pay tax again
  38. Your gains cannot be taxed
  39. A currency
  40. An amazing new class of asset
  41. An asset
  42. A means to economic freedom
  43. A store of value
  44. The best investment the word has ever seen
  45. A great investment
  46. Efficient
  47. Scalable
  48. Stable
  49. Resilient
  50. Reliable
  51. Low energy
  52. Low risk
  53. Redistribute wealth to everybody
  54. No more have's and have not's
  55. No more US and THEM
  56. No more disadvantaged people
  57. No more RICH and POOR
  58. No more poor people
  59. Uses amazing new technology
  60. Uses ingenious new technology
  61. Satishi Nakamoto invented ...
  62. Segwit will solve all of Bitcoin's woes
  63. Lightning Network will solve all of Bitcoin's woes
  64. Limited by scarcity
  65. Can only go up in value
  66. Price cannot crash
  67. Has intrinsic value
  68. Value will always be worth more than cost to mine
  69. Adoption by investors is increasing exponentially
  70. Adoption by investors is increasing
  71. Adoption by merchants is increasing exponentially
  72. Adoption by merchants is increasing
  73. You are secure if you keep your coins on an exchange
  74. You are secure if you keep your coins in a hardware wallet
  75. You are secure if you keep your coins in an air-gapped Linux PC
  76. Will change the world
  77. "the next phase in human evolution"
  78. "Blockchain is more encompassing than the internet"
  79. Blockchain can solve previously unsolvable problems.
  80. "The only regulation we need is the blockchain"
  81. "Bank the unbanked"
  82. "To abolish financial slavery and the state's toxic monopoly on money."
  83. "To have better tools in the fight against the state violence and taxation."
  84. "To stamp information on a blockchain forever so we can bypass state censorship, copyrights, patents(informational monopolies) etc."
  85. Will destroy / overthrow FIAT
  86. Will destroy / overthrow the world's governments
  87. Will destroy / overthrow the banking system
  88. Will destroy / overthrow the world economies
  89. Will free people from tyranny
  90. Will give people financial freedom
  91. Will bring world peace
  92. Never going below $19K again
  93. Never going below $18K again
  94. Never going below $17K again
  95. Never going below $16K again
  96. Never going below $15K again
  97. Never going below $14K again
  98. Never going below $13K again
  99. Never going below $12K again
  100. Never going below $11K again
  101. Never going below $10K again
  102. Never going below $9K again
  103. Never going below $8K again
  104. Never going below $7K again
  105. Never going below $6K again
  106. Never going below $5K again
  107. Never going below $4K again
  108. Is NOT a Scam
  109. Hashing Power secures the Bitcoin network
  110. Untraceable, private transactions
  111. Guaranteed privacy
  112. Not created out of thin air
  113. Not created out of thin air by unregulated, unbacked entities
  114. Totally NOT a scam
  115. Is not used primarily by crimonals, drug dealers, or money launderers.
  116. 100% secure
  117. 2010 will be the "Year of Crypto"
  118. 2011 will be the "Year of Crypto"
  119. 2012 will be the "Year of Crypto"
  120. 2013 will be the "Year of Crypto"
  121. 2014 will be the "Year of Crypto"
  122. 2015 will be the "Year of Crypto"
  123. 2016 will be the "Year of Crypto"
  124. 2017 will be the "Year of Crypto"
  125. 2018 will be the "Year of Crypto"
  126. 2019 will be the "Year of Crypto"
  127. 2010: MASS ADOPTION any day now"
  128. 2011: MASS ADOPTION aany day now"
  129. 2012: MASS ADOPTION aaany day now"
  130. 2013: MASS ADOPTION aaaany day now"
  131. 2014: MASS ADOPTION aaaaany day now"
  132. 2015: MASS ADOPTION aaaaaany day now"
  133. 2016: MASS ADOPTION aaaaaaany day now"
  134. 2017: MASS ADOPTION aaaaaaaany day now"
  135. 2018: MASS ADOPTION aaaaaaaaany day now"
  136. 2019: MASS ADOPTION aaaaaaaaany day now"
  137. "Financial Freedom, bro."
  138. no single entity, government or individual, can alter or reverse its transactions
  139. insurance against the tyranny of state
  140. Bitcoin has come to destroy all governments and bring about the libertarian utopia of my dreams.
  141. The major issues in Bicoin's network will be fixed. This is still early days, Bitcoin has only been around for 2+ years.
  142. The major issues in Bicoin's network will be fixed. This is still early days, Bitcoin has only been around for 5+ years.
  143. The major issues in Bicoin's network will be fixed. This is still early days, Bitcoin has only been around for 7+ years.
  144. The major issues in Bicoin's network will be fixed. This is still early days, Bitcoin has only been around for 9+ years.
  145. 1,000's of predictions of skyrocketing and/or never falling prices
  146. Escape the petty rivalries of warring powers and nation states by scattering control among the many. The Bitcoin Cash debacle proves that even the most cryptographically secure plans of mice and men often go awry. Ref: https://www.reddit.com/Buttcoin/comments/9zfhb6/like_theres_only_one_flaw_with_buttcoin_crash/ea8s11m
  147. People will NEVER be able to welch out of bets or deals again. Nov-2018, Ref: https://www.reddit.com/Buttcoin/comments/9zvpl2/the_guy_who_made_the_1000_bet_that_btc_wouldnt/
  148. "Everything will be better, faster, and cheaper.", Brock Pierce, EOS.io shill video.
  149. "Everything will be more connected.", Brock Pierce, EOS.io shill video.
  150. "Everything will be more trustworthy.", Brock Pierce, EOS.io shill video.
  151. "Everything will be more secure.", Brock Pierce, EOS.io shill video.
  152. "Everything that exists is no-longer going to exist in the way that it does today.", Brock Pierce, EOS.io shill video.
  153. "Everything in this world is about to get better.", Brock Pierce, EOS.io shill video.
  154. You are a slave to the bankers
  155. The bankers print money and then you pay for it
  156. Bitcoin is The Peoples Money
  157. Bitcoin will set you free
  158. Bitcoin will set you free from the slavery of the banks and the government Ref: https://www.reddit.com/Bitcoin/comments/cd2q94/bitcoin_shall_set_you_free/
  159. ~~Bitcoin is "striking fear into the hearts of bankers, precisely because Bitcoin eliminates the need for banks. ~~, Mark Yusko, billionaire investor and Founder of Morgan Creek Capital, https://www.bitcoinprice.com/predictions/
  160. "When transactions are verified on a Blockchain, banks become obsolete.", Mark Yusko, billionaire investor and Founder of Morgan Creek Capital, https://www.bitcoinprice.com/predictions/
  161. SnapshillBot quotes from delusional morons:
  162. "A bitcoin miner in every device and in every hand."
  163. "All the indicators are pointing to a huge year and bigger than anything we have seen before."
  164. "Bitcoin is communism and democracy working hand in hand."
  165. "Bitcoin is freedom, and we will soon be free."
  166. "Bitcoin isn't calculated risk, you're right. It's downright and painfully obvious that it will consume global finance."
  167. "Bitcoin most disruptive technology of last 500 years"
  168. "Bitcoin: So easy, your grandma can use it!"
  169. "Creating a 4th Branch of Government - Bitcoin"
  170. "Future generations will cry laughing reading all the negativity and insanity vomited by these permabears."
  171. "Future us will thank us."
  172. "Give Bitcoin two years"
  173. "HODLING is more like being a dutiful guardian of the most powerful economic force this planet has ever seen and getting to have a say about how that force is unleashed."
  174. "Cut out the middleman"
  175. "full control of your own assets"
  176. "reduction in wealth gap"
  177. "no inflation"
  178. "cannot print money out of thin air"
  179. "Why that matters? Because blockchain not only cheaper for them, it'll be cheaper for you and everyone as well."
  180. "If you are in this to get rich in Fiat then no. But if you are in this to protect your wealth once the current monetary system collapse then you are protected and you'll be the new rich."
  181. "Theres the 1% and then theres the 99%. You want to be with the rest thats fine. Being different and brave is far more rewarding. No matter your background or education."
  182. "NO COINERS will believe anything they are fed by fake news and paid media."
  183. "I know that feeling (like people looking at you as in seeing a celebrity and then asking things they don't believe until their impressed)."
  184. "I literally walk round everyday looking at other people wondering why they even bother to live if they don't have Bitcoin in their lives."
  185. "I think bitcoin may very well be the best form of money we’ve ever seen in the history of civilization."
  186. "I think Bitcoin will do for mankind what the sun did for life on earth."
  187. "I think the constant scams and illegal activities only show the viability of bitcoin."
  188. "I think we're sitting on the verge of exponential interest in the currency."
  189. "I'm not using hyperbole when I say Satoshi found the elusive key to World Peace."
  190. "If Jesus ever comes back you know he's gonna be using Bitcoin"
  191. "If this idea was implemented with The Blockchain™, it would be completely flawless! Flawless I tell you!"
  192. "If you're the minimum wage guy type, now is a great time to skip food and go full ramadan in order to buy bitcoin instead."
  193. "In a world slipping more and more into chaos and uncertainty, Bitcoin seems to me like the last solid rock defeating all the attacks."
  194. "In this moment, I am euphoric. Not because of any filthy statist's blessing, but because I am enlightened by own intelligence."
  195. "Is Bitcoin at this point, with all the potential that opens up, the most undervalued asset ever?"
  196. "It won't be long until bitcoin is an everyday household term."
  197. "It's the USD that is volatile. Bitcoin is the real neutral currency."
  198. "Just like the early Internet!"
  199. "Just like the Trojan Horse of old, Bitcoin will reveal its full power and nature"
  200. "Ladies if your man doesnt have some bitcoin then he cant handle anything and has no danger sex appeal. He isnt edgy"
  201. "let me be the first to say if you dont have bitcoin you are a pussy and cant really purchase anything worldwide. You have no global reach"
  202. "My conclusion is that I see this a a very good thing for bitcoin and for users"
  203. "No one would do such a thing; it'd be against their self interests."
  204. "Ooh lala, good job on bashing Bitcoin. How to disrespect a great innovation."
  205. "Realistically I think Bitcoin will replace the dollar in the next 10-15 years."
  206. "Seperation of money and state -> states become obsolete -> world peace."
  207. "Some striking similarities between Bitcoin and God"
  208. "THANK YOU. Better for this child to be strangled in its crib as a true weapon for crypto-anarchists than for it to be wielded by toxic individuals who distort the technology and surrender it to government and corporate powers."
  209. "The Blockchain is more encompassing than the internet and is the next phase in human evolution. To avoid its significance is complete ignorance."
  210. "The bull run should begin any day now."
  211. "The free market doesn't permit fraud and theft."
  212. "The free market will clear away the bad actors."
  213. "The only regulation we need is the blockchain."
  214. "We are not your slaves! We are free bodies who will swallow you and puke you out in disgust. Welcome to liberty land or as that genius called it: Bitcoin."
  215. "We do not need the bankers for Satoshi is our saviour!"
  216. "We have never seen something so perfect"
  217. "We must bring freedom and crypto to the masses, to the common man who does not know how to fight for himself."
  218. "We verified that against the blockchain."
  219. "we will see a Rennaisnce over the next few decades, all thanks to Bitcoin."
  220. "Well, since 2006, there has been a infinite% increase in price, so..."
  221. "What doesn't kill cryptocurrency makes it stronger."
  222. "When Bitcoin awake in normally people (real people) ... you will have this result : No War. No Tax. No QE. No Bank."
  223. "When I see news that the price of bitcoin has tanked (and thus the market, more or less) I actually, for-real, have the gut reaction "oh that’s cool, I’ll be buying cheap this week". I never knew I could be so rational."
  224. "Where is your sense of adventure? Bitcoin is the future. Set aside your fears and leave easier at the doorstep."
  225. "Yes Bitcoin will cause the greatest redistribution of wealth this planet has ever seen. FACT from the future."
  226. "You are the true Bitcoin pioneers and with your help we have imprinted Bitcoin in the Canadian conscience."
  227. "You ever try LSD? Perhaps it would help you break free from the box of state-formed thinking you have limited yourself..."
  228. "Your phone or refrigerator might be on the blockchain one day."
  229. The banks can print money whenever they way, out of thin air, so why can't crypto do the same ???
  230. Central Banks can print money whenever they way, out of thin air, without any consequences or accounting, so why can't crypto do the same ???
  231. It's impossible to hide illegal, unsavory material on the blockchain
  232. It's impossible to hide child pornography on the blockchain
  233. Fungible
  234. All Bitccoins are the same, 100% identical, one Bitcoin cannot be distinguished from any other Bitcoin.
  235. The price of Bitcoin can only go up.
  236. "Bubbles are mathematically impossible in this new paradigm. So are corrections and all else", John McAfee, 7 Dec 2017 @ 5:09 PM,https://mobile.twitter.com/officialmcafee/status/938938539282190337
  237. Scarcity
  238. The price of Bitcoin can only go up because of scarcity / 21 million coin limit. (Bitcoin is open source, anyone can create thir own copy, and there are more than 2,000+ Bitcoin copies / clones out there already).
  239. immune to government regulation
  240. "a world-changing technology"
  241. "a long-term store of value, like gold or silver"
  242. "To Complex to Be Audited."
  243. "Old Auditing rules do not apply to Blockchain."
  244. "Old Auditing rules do not apply to Cryptocurrency."
  245. "Why Bitcoin has Value: SCARCITY.", PlanB, Coin Shill, 22-Mar-2019, https://medium.com/@100trillionUSD/modeling-bitcoins-value-with-scarcity-91fa0fc03e25
  246. "Bitcoin is the first scarce digital object the world has ever seen, it is scarce like silver & gold, and can be sent over the internet, radio, satellite etc.", PlanB, Coin Shill, 22-Mar-2019, https://medium.com/@100trillionUSD/modeling-bitcoins-value-with-scarcity-91fa0fc03e25
  247. "Surely this digital scarcity has value.", PlanB, Coin Shill, 22-Mar-2019, https://medium.com/@100trillionUSD/modeling-bitcoins-value-with-scarcity-91fa0fc03e25
  248. Bitcoin now at $16,600.00. Those of you in the old school who believe this is a bubble simply have not understood the new mathematics of the Blockchain, or you did not cared enough to try. Bubbles are mathematically impossible in this new paradigm. So are corrections and all else", John McAfee, 7 Dec 2017 @ 5:09 PM,https://mobile.twitter.com/officialmcafee/status/938938539282190337
  249. "May 2018 will be the last time we ever see $bitcoin under $10,000", Charlie Shrem, bitcoin advocate and convicted felon, 11:31 AM 3-May-2018, https://twitter.com/CharlieShrem/status/992109375555858433
  250. "Last dip ever.", AngeloBTC, 14 Oct 2018, https://mobile.twitter.com/AngeloBTC/status/1051710824388030464/photo/1
  251. "Bitcoin May Have Just Experienced its Final Shakeout Before a Big Rally", Joseph Young, coin shill, October 15, 2018 22:30 CET, https://www.ccn.com/bitcoin-may-have-just-experienced-its-final-shakeout-before-a-big-rally/
  252. Bitcoin would be a buy if the price fell under $5,000., Mohamed El-Erian, chief economic advisor at Allianz, 29-Jun-2018, https://www.ccn.com/bitcoin-a-buy-below-5000-says-allianz-chief-economic-adviso
  253. 2013-11-27: ""What is a Citadel?" you might wonder. Well, by the time Bitcoin became worth 1,000 dollar [27-Nov-2013], services began to emerge for the "Bitcoin rich" to protect themselves as well as their wealth. It started with expensive safes, then began to include bodyguards, and today, "earlies" (our term for early adapters), as well as those rich whose wealth survived the "transition" live in isolated gated cities called Citadels, where most work is automated. Most such Citadels are born out of the fortification used to protect places where Bitcoin mining machines are located. The company known as ASICminer to you is known to me as a city where Mr. Friedman rules as a king.", u/Luka_Magnotta, aka time traveler from the future, 31-Aug-2013, https://www.reddit.com/Bitcoin/comments/1lfobc/i_am_a_timetraveler_from_the_future_here_to_beg/
  254. 2018-02: Bitcoin price to hit $27,000 by February 2018, Trace Mayer, host of the Bitcoin Knowledge Podcast, and self-proclaimed entrepreneur, investor, journalist, monetary scientist and ardent defender, Link #1: https://mobile.twitter.com/TraceMayestatus/917260836070154240/photo/1, Link #2: https://www.bitcoinprice.com/predictions/
  255. 2018-06: "Bitcoin will surpass $15,000 in June [2018]." John McAfee, May 25, 2018, https://bitcoinist.com/john-mcafee-says-bitcoin-will-surpass-15000-in-june/
  256. 2018-07: Bitcoin will be $28,000 by mid-2018, Ronnie Moas, Wall Street analyst and founder of Standpoint Research, http://helpfordream.com/2018/12/23/5-bitcoin-price-predictions-gone-wrong/.
  257. 2018-12: Bitcoin to reach a price of between 40,000 and 110,000 US dollars by the end of the 2017 bull run ... sometime before 2019, Masterluc, 26-May-2017, an anonymous "legendary" Bitcoin trader, Link #1: https://www.tradingview.com/chart/BTCUSD/YRZvdurN-The-target-of-current-bubble-lays-between-40k-and-110k/, Link #2: https://www.bitcoinprice.com/predictions/
  258. 2018-12: "There is no reason why we couldn’t see Bitcoin pushing $50,000 by December [2018]", Thomas Glucksmann, head of APAC business at Gatecoin, Link #1: https://www.bitcoinprice.com/predictions/
  259. 2018-12: Listen up you giggling cunts... who wants some?...you? you want some?...huh? Do ya? Here's the deal you fuckin Nerds - Butts are gonna be at 30 grand or more by next Christmas [2018] - If they aren't I will publicly administer an electronic dick sucking to every shill on this site and disappear forever - Until then, no more bans or shadow bans - Do we have a deal? If Butts are over 50 grand me and Lammy get to be mods. Deal? Your ole pal - "Skully" u/10GDeathBoner, 3-Feb-2018 https://www.reddit.com/Buttcoin/comments/7ut1ut/listen_up_you_giggling_cunts_who_wants_someyou/
  260. 2018-12: 1 bitcoin = 1 Lambo. Remind me on Christmas eve [2018] u/10GDeathBoner, 3-Feb-2018, https://www.reddit.com/Buttcoin/comments/7ut1ut/listen_up_you_giggling_cunts_who_wants_someyou/dtn2pna
  261. 2018-12: Been in BTC since 2014 and experienced many "deaths" of BTC... this too shall pass... $10k end of the year. [2018] u/Exxe2502, 30-Jun-2018 https://reddit.com/Bitcoin/comments/8uur27/_/e1ioi5b/?context=1
  262. 2018-12: "Yale Alumni prediction - 30 Grand by Christmas [2018] - and you my friend... you will be the one eating Mcafee's dick in 2020. :) -:", u/SirNakamoto, 15-Jun-2018, https://www.reddit.com/Buttcoin/comments/8r0tyh/fdic_agrees_to_cover_bitcoin_losses_in_event_of/e0nzxq7
  263. 2018-12: "Impossible For Bitcoin Not to Hit $10,000 by This Year (2018)", Mike Novogratz, a former Goldman Sachs Group Inc. partner, ex-hedge fund manager of the Fortress Investment Group and a longstanding advocate of cryptocurrency, 22-Sep-2018, https://www.newsbtc.com/2018/09/22/billionaire-novogratz-impossible-for-bitcoin-not-to-hit-10000-by-this-yea
  264. 2018-12: "[Bitcoin] between $13,800 and $14,800 [by end of 2018]", Fundstrat's Tom Lee, 13-Dec-2018, https://www.cnbc.com/2018/12/13/wall-streets-bitcoin-bull-tom-lee-we-are-tired-of-people-asking-us-about-target-prices.html
  265. 2018-12: "Bitcoin is going to be $15k-$20k by the end of the year (2018)", Didi Taihuttu, 1-Nov-2018, https://www.wsj.com/video/series/moving-upstream/the-bitcoin-gamble/85E3A4A7-C777-4827-9A3F-B387F2AB7654
  266. 2018-12: 2018 bitcoin price prediction reduced to $15,000 [was $25,000], Fundstrat's Tom Lee, 16-Nov-2018, https://www.cnbc.com/2018/11/16/wall-streets-crypto-bull-tom-lee-slashes-year-end-forecast-by-10000.html
  267. 2018-12: "I want to be clear, bitcoin is going to $25,000 by year end (2018)", Fundstrat's Tom Lee, 5-Jul-2018, https://www.cnbc.com/video/2018/07/05/tom-lee-i-want-to-be-clear-bitcoin-is-going-to-25000-by-year-end.html
  268. 2018-12: "Bitcoin could be at $40,000 by the end of 2018, it really easily could", Mike Novogratz, a former Goldman Sachs Group Inc. partner, ex-hedge fund manager of the Fortress Investment Group and a longstanding advocate of cryptocurrency, 21-Sep-2018, https://www.youtube.com/watch?v=6lC1anDg2KU
  269. 2018-12: "Bitcoin will be priced around $50,000 by the end of the year (2018)", Bitcoin bull Arthur Hayes, co-founder and CEO of BitMEX, 29-Jun-2018, https://www.cnbc.com/2018/06/29/bitcoin-will-reach-50000-in-2018-says-founder-of-bitcoin-exchange.html
  270. 2018-12: "Bitcoin could definitely see $50,000 in 2018", Jeet Singh, cryptocurrency portfolio manager, speaking in January 2018 at the World Economic Forum in Davos, https://www.dcforecasts.com/new-prediction-says-bitcoin-hit-50000-2018/
  271. 2018-12: "Bitcoin will hit $100,000 this year (2018)", Kay Van-Petersen, an analyst at Saxo Bank, 17-Jan-2018, https://www.cnbc.com/2018/01/16/bitcoin-headed-to-100000-in-2018-analyst-who-forecast-2017-price-move.html
  272. 2018-12: "Bitcoin price to surpass the $100,000 mark by the end of 2018", Tone Vays, 21-Sep-2017, https://www.ccn.com/prominent-bitcoin-trader-price-is-heading-towards-100000-in-2018/
  273. 2018-12: "Bitcoin’s Price Will Surpass the $100,000 Mark by the End of 2018", Anonymous ("author" obviously too embarrassed to put his name to such bullshit "articles"), Oct-2018, https://investingpr.com/bitcoin-price-predictions-for-2018/
  274. 2018-12: "Our [2018] year-end bitcoin target is $7700.", James Stefurak, Founder at Monarch Research. See article: "Experts Forecast Bitcoin will rise by 2019", REF: https://hackernoon.com/experts-forecast-bitcoin-will-rise-by-2019-f4af8807036b?gi=dfea3c30d6d8
  275. 2018-12: "... we’ll see the price rally reaching its all-time of high of around $20K before the end of 2018", Khaled Khorshid, Co-Founder at Treon ICO. See article: "Experts Forecast Bitcoin will rise by 2019", REF: https://hackernoon.com/experts-forecast-bitcoin-will-rise-by-2019-f4af8807036b?gi=dfea3c30d6d8
  276. 2018-12: Bitcoin will end 2018 at the price point of $50,000, Ran Neuner, host of CNBC’s show Cryptotrader and the 28th most influential Blockchain insider according to Richtopia,https://www.bitcoinprice.com/predictions/
  277. Plus a whole host of wrong 2019 predictions (could not be included here because of post character limit issues), so please see my earlier post from 4 days ago: Ummm, remember those "Expert" Bitcoin Price Predictions for 2019 ..... ohhhhh dear ....., https://www.reddit.com/Buttcoin/comments/eiqhq3/ummm_remember_those_expert_bitcoin_price/
.
But it's NOT all bad news, some claims and promises are yet to be determined:
  1. Never going below $3K again
  2. Never going below $2K again
  3. Never going below $1K again
  4. Any others ? Please let me know.
submitted by Crypto_To_The_Core to Buttcoin [link] [comments]

Epic Cash Vitex Exchange AMA

What is EPIC CASH?
Epic Cash is the final point in the journey toward true P2P internet cash, the cornerstone of a private financial system. The Epic currency aims to become the world’s most effective privacy-protecting form of digital money. In order to fulfill that goal, it satisfies the three principal functions of money:
1. Store of Value — can be saved, retrieved, and exchanged at a later time, and of predictable value when retrieved;
2. Medium of Exchange — anything accepted as representing a standard of value and exchangeable for goods or services;
3. Unit of Account — the unit by which the value of a thing is accounted for and compared.
Website: http://epic.tech Whitepapers: http://epic.tech/whitepaper Epic Cash Community: https://t.me/EpicCash Miner Chat: https://t.me/EpicMiners Gitlab: gitlab.com/epiccash Twitter: twitter.com/EpicCashTech Social Media: http://epic.tech/social-media Exchanges: https://epic.tech/service-list
Oleg✌🏻
Hello community! Our AMA with EPIC begins🚀 We are very happy to have you here, on our joint AMA👌 So, lets start! The very first question for you. Can you introduce yourself?
Max Freeman | Epic Cash | Mimblewimble I’m Max Freeman, which stands for “Maximum Freedom for Mankind” — we believe that the existing fiat money system enslaves people by unfairly confiscating their wealth through inflation. By using an honest money system such as Epic, we can improve the quality of life for billions of people worldwide.
Yoga Dude Hello, I am Yoga Dude 🙂 I handle Marketing and PR, in crypto since 2011 started as Bitcoin miner, and in 2014 in Monero, and in 2015 in Ethereum, oh and briefly in DOGE for fun and unexpected profit. Heard about Epic Cash while learning about the Mimblewimble algo and joined the team last year.
JLong I am John, Doing the general engineering and managerial work
Max Freeman | Epic Cash | Mimblewimble I have been involved in early stage cryptos for the past 3 years, after building a global trading business for the past 20 years.
Oleg✌🏻 nice to meet you🙂
Max Freeman | Epic Cash | Mimblewimble Epic is a decentralized community project like Bitcoin or Monero, there is no central authority or corporation involved. We had no ICO and no premine, we had a fair launch at 0 supply last September.
Yoga Dude Great to meet everyone :)
Oleg✌🏻 Here we go the 1st question for you ~ 1. What is Epic Cash about?
Yoga Dude Epic Cash is designed to fulfill Satoshi’s original vision of P2P electronic cash, adjusting for what we learned from Bitcoin, a medium of exchange that is fast, free, open to all, while being private and fungible. We launched in September 2019 as a Proof of Work mineable crypto, without an ICO or a premine.
Oleg✌🏻 Look like a real Bitcoin🙂
Yoga Dude with privacy and fungibility 😄
Oleg✌🏻 Sounds cool! move on to the next question… 2. What makes Epic Cash better than Monero or other privacy coins?
Max Freeman | Epic Cash | Mimblewimble First off, we have a lot of respect for Monero and other privacy coins, we learned a lot from what they did right and what they did wrong, Our blockchain is much lighter than Monero or Bitcoin, our transaction engine is faster than Monero or ZCash. We use a three mining algo approach to allow more users the ability to obtain Epic Cash. We are a new, highly undervalued, coin and we look great not only for future use but for today's investment. Our blockchain is 90+% smaller than Monero or Bitcoin. Coins such as Zcash have optional privacy. Epic makes all transactions private, and it is impossible to trace movements of coins by watching wallet addresses.
Oleg✌🏻 Young and hot😋 security and privacy level is very important now but… 3. Why copy the same supply economics as Bitcoin?
Yoga Dude It is hard to compete with the success of Bitcoin today, part of the elegance and the appeal of Bitcoin is the responsible emission rate, terminating at 21million highly sub dividable coins. Like the Bitcoin supply curve, Epic Cash encourages early adopters, and with subsequent halvenings maintains a gradually diminishing flow of additional currency while preserving the overall value.
Max Freeman | Epic Cash | Mimblewimble In 2028, the supply of Epic matches that of Bitcoin and they stay in sync until the final coin is mined in 2140. We have 4 halvenings between now and then, which is demonstrated in Bitcoin to drive the value over market cycles. Epic is a chance for people who were late to Bitcoin to ride the wave and not miss their opportunity this time.
Oleg✌🏻 Interesting! 4. Why Choose Epic Cash over Grin and Beam?
Max Freeman | Epic Cash | Mimblewimble First of all, we have tremendous respect for all Mimblewimble currencies and their talented teams, they all taught us a lot and we are thankful for that. Without sounding too contentious, the choice seems obvious. We offer the same core tech, but with a much more responsible emission curve — Grin is an endless fountain of emission and inflation (60 per second forever), and Beam is even more frontloaded outpacing even Grin’s aggressive emission schedule for the next several years… We respect Grin and Beam, we learned from them, and we believe we are the next evolutionary step. Additionally, as we mentioned earlier, we offer more ways to mine Epic Cash, both with GPU and CPU and ASICs, this gives us more potential users and miners, vs Grin and Beam that are only mineable with GPUs.
Yoga Dude Yes, all that ☝️😄
Oleg✌🏻 I hope the miners read it all carefully 👌 Next question 5. Why have a development fund tax and what will it be used for?
Yoga Dude Dev fund tax today is at a reasonable 7.77% dropping by 1.11% every year until it hits zero. As Epic Cash grows in value these funds will become increasingly more relevant in additional technical, marketing, and fintech partnerships developments.
Oleg✌🏻 Very smart! 6. What is the advantage of 3 mining algorithms?
Max Freeman | Epic Cash | Mimblewimble By having multiple mining algorithms we are able to attract CPU, GPU, and ASIC miners simultaneously. Currently all other Mimblewimble currencies are mineable with GPU only ignoring a large segment of CPU miners. Monero made a splash migrating to the RandomX CPU mining algo. Epic Cash from the beginning embraces all mining communities. Many miners are successfully using older hardware such as Xeon processors to help secure the network. We use RandomX for CPU, ProgPow for GPU, and Cuckoo for ASIC.
Longer term, our flexible architecture means we can have many algorithms, not just 3. Our roadmap includes an allocation for SHA3 Keccak, which will help further decentralize the network and keep it unstoppable.
Yoga Dude We love miners 🙂 and Epic Cash can be mined with laptops and gaming rigs 🙂
Oleg✌🏻 A wide selection of mining methods is a great way to create a stable, decentralized and large network👌 Let’s talk about persons… 7. Who are the people developing Epic Cash?
Yoga Dude We are blessed with a very talented team of skilled developers with diverse backgrounds, many of them are volunteers who believe in what Epic Cash stands for and contribute with product and usability innovation. Our teams main focus is to make Epic Cash the best, most secure, most user friendly and usable product on the market, without making it unnecessarily techie, with as much mainstream user appeal as possible. This is a serious challenge but we are up for it 😄
Max Freeman | Epic Cash | Mimblewimble It is also important to note that we are a truly open ecosystem that anyone can participate in. Our community has developed wallets, mining pools, educational content, and much else besides. We are not limited by the funding generated during an ICO or VC investment, our users are an essential element of our team.
Oleg✌🏻 Sounds very attractive. 8. What do you think is currently lack in today’s crypto?
Max Freeman | Epic Cash | Mimblewimble We believe there is not enough privacy, anonymity and fungibility, although there is a growing awareness in the community as to why these are necessary. People are waking up to the fact that privacy is a right for everyone but today it is being exploited and violated by corporations, governments and unscrupulous individuals. Privacy does not mean that you have something to hide. We have doors on our houses, curtains on our windows, we wear clothes, and we have security on our bank accounts and businesses, not because we are criminals.
Fungibility (the property of not being able to distinguish one unit of currency from another) also has become a hot issue as people have started to get in trouble because of someone else’s misdeeds. Tainted money (coins that are blacklisted or restricted) is a problem for Bitcoin and Ethereum, the top two cryptos today. Mimblewimble eliminates the risk of tainted coins making them indistinguishable from each other. With traceable coins, you always have to worry if the coins you are getting were involved in a hack, or perhaps the darknet.
Oleg✌🏻 It’s good to see strong and safe coin in our time Let’s talk about your future… 9. What does the Epic Cash roadmap look like going forward?
Yoga Dude First and foremost, we are focused on security and usability.
We are working on a new, improved GUI wallet to incorporate the community feedback on ways to improve it.
We are in the process of completing final testing phases for the next iteration of Epic Cash which will make it more secure and stable. Once that is done, we will be rolling out Android and iOS support to make Epic Cash usable on leading smartphones and smartwatches. Beyond that without going into too much detail we are focused on continuous evolution of privacy, ease of mining, and overall speed and usability.
And of course we are constantly looking to add more exchanges both with and without KYC.
Oleg✌🏻 Are you working on Android and IOS wallet ? What will your application be?
Max Freeman | Epic Cash | Mimblewimble Yes, we will release a mobile wallet this year. It will bring us one step closer to people being able to actually use cryptocurrency as money in daily life.
Yoga Dude The idea is to be able to access Epic Cash from any platform and device
Max Freeman | Epic Cash | Mimblewimble Epic is very lightweight, which means that low-end devices such as smartwatches can participate.
Oleg✌🏻 Ok, got it. Thanks for clarification! 10. What else can you tell us about Epic Cash?
Max Freeman | Epic Cash | Mimblewimble Well one thing I really want to mention is our great Epic Cash community. We’ve been building a decentralized community organically, without the talk of price pumps, pressure to HODL and other BS crypto-gimmicks. Our community is truly global and consists of developers, volunteers, miners, and other Epic enthusiasts spreading the word about Epic Cash, helping us reach millions of people around the world to improve their quality of life through social media and directly. Everyone is an evangelist, everyone is an influencer, everyone has the power to make the world a better place to live in. As we continue to grow — the future looks Epic 😊
Yoga Dude Definitely the community! We got a talented crowd of very cool and motivated people from all over the world!
Oleg✌🏻 Thank you guys, for such informative answers 🙂 Now we proceed to Section 3, where a Community can ask their questions to the EPIC team Now I’ll open chat for the quite some time … Oleg✌🏻 Thank you all, dear community! EPIC team, please choose the 10 best questions you want to answer.
AngeI Everyone likes Privacy & Epic Cash provides their Best Privacy to users But, Which Technologies are being used by Epic Cash to make Blockchain very Private and Completely untrackable ?
Max Freeman | Epic Cash | Mimblewimble From the wallet to the node, Epic uses Dandelion++ to bounce transactions around the world before they go into the mempool for mining. Within the blockchain itself, Cut-Through merges all transactions in a block together, with CoinJoin automatically mixing all coins.
Beyond that, there are no addresses, so it’s impossible to watch someone’s wallet.
Arnold Even litecoin is implementing mimblewimble, Don’t you think it’s a significant threat for Epic if they implement it, then why would anyone use a less popular and a new cryptocurrency.
Max Freeman | Epic Cash | Mimblewimble LTC is implementing mw as an “extension block”, meaning that it is optional and not all transactions will use it. This is very different than the core protocol leveraging mw to make all transactions private and all coins fungible.
Aluta Why Epic cash so much focus on fungibility? Does fungibility matters that much?
Max Freeman | Epic Cash | Mimblewimble Fungibility is going to be one of the key issues within the cryptocurrency space in the coming years. Today, if you accept traceable coins from a seller, you are liable if they have ever been used in any illegal activity. This has led to a two tier market where freshly minted coins sell for more than circulated coins. When coins are fungible, like Epic, you don’t have to worry that you will run into a problem when an exchange or merchant blocks your transaction.
Joxes It is a pleasure.
When I first researched EpicCash, google showed me a youtube video that talked about how to mine with EpicCash. It made me ask: is this mining activity profitable so far?
We are in the early stages of development I guess, what adoption strategies are you taking to have sustained growth? is it feasible to reach N ° 500 rank in coinmarketcap in the medium term?
Yoga Dude When I got into crypto, it was by mining Bitcoin back in 2011 when you could still solve blocks on a single computer, but Bitcoin at the time was anything but profitable 😄 Today Epic Cash is still new, still young, and still undervalued. I believe it is mining-worthy because of its potential, not because of today’s price. By allowing Epic Cash to be mined with GPU and CPU on gaming rigs, servers, and even laptops we offer maximum public participation in our project. More people involved in the project, the more evangelists there are. We empower people to mine Epic Cash and to promote it.
S.P.A.D.E What new features of Epic Cash provide that Grin or Beam does not offer. Why do we need Epic Cash?
Max Freeman | Epic Cash | Mimblewimble They are great coins, but there are some ways in which Epic improves. Epic has better tokenomics than Grin and a more sustainable model than Beam, that has a company behind it that needs to repay investors via its high dev tax. this article explains in more detail https://medium.com/@frodofreeman/overview-of-mimblewimble-cryptocurrencies-7c70be146f50
Sahil What’s the Minimum Hardware / setup Required for Mining of EPIC Cash coins? Is Mining Profitable and Can we Mine EPIC Cash coins at Home?
Max Freeman | Epic Cash | Mimblewimble It is possible to mine on an ordinary laptop or desktop from the last 5 years, sometimes older. Epic is open to everyone, and our friendly community is standing by to help you get started at t.me/epicminers
Erven James Sato “TOKEN BURN” is BENEFECIAL for any projects, in able to CONTROL THE NUMBER OF TOKEN CIRCULATION and TO PROVIDE GREATER INCENTIVES TO INVESTORS.
Does your GREAT PROJECT have plan about TOKEN BURN?
Xenolink For deflating projects It is beneficial to drive the demand / scarcity / and price up in a faster pace. Epic Cash is here for the organic long run not the short run. However when it comes to long term economics elastic supplies whether inflating or deflating will not be a solid long term economic model. This has been heavily discussed already with Bitcoins inelastic Fixed 21 million supply in the past. Having a fixed model demonstrates good long term economics without worrying about balancing a deflating/inflating model. Bitcoin is a perfect example of a 21 million inelastic fixed supply model that has been proving itself till today. Which is why we are also using the same fixed 21 million supply model. Epic Cash plans to have a solid organic long term future to bring free private fungible money and make this world a better place.
Red Z🔥🤙 No one predicted the COVID-19 pandemic while developing their business model. But the crisis and recession of the global economy is our present with you and it affects all sectors, including blockchain. Will you make or have already made changes to the project roadmap, tokenomics? Do you have a plan in case the situation does not improve in the coming months and will affect the crypto industry even more?
Yoga Dude One thing we have seen as the result of the COVID-19 is more governments are talking about moving to digital cash — digital dollar in USA, digital Lira in Turkey, etc… If in the past the idea of digital money was not graspable by some people, today its the governments that are educating the people for us about the value of digital currency… What is ironic, the governments, by printing money to solve the economic consequences of COVID-19 also educating the consumer about the true “value” of fiat… What we offer is a touch free, borderless, private, anonymous, fungible currency that can not be printed beyond the initial defined algo. We are more responsible than the printing presses of the governments 🤔
kunlefighter How does the Dandelion++ Protocol, Confidential Transactions (CT) and CoinJoin assist in protecting the privacy of individuals and their transactions on Epic Cash Blockchain?
Max Freeman | Epic Cash | Mimblewimble Dandelion++ bounces transactions around before committing them to the blockchain, making it impossible to determine where they originated from. Confidential Transactions means that all tx are private, you can’t tell anything about where the coins have been or who they belonged to. CoinJoin in essence melts down and re-mints each coin every time it is used, making it impossible to track their ownership or usage history. Epic provides comprehensive privacy to everyone, without the compromises that other pre-mimblewimble coins have.
Dr Mönica Hello sir @maxfreeman4 @Johnsstec @Yogadude
Thanks for the ama I notice that Epic Cash has 2 type of new algorithm, progPoW version 0.15.0 and randomX version 1.0.3 NOW , CAN you tell me why you choose these 2 algorithm???
Yoga Dude We went with RandomX because it is a solid and very popular CPU centric algo used by several coins — most recently Monero. Most miners today heavily favor ASICs or GPUs, leaving a lot of solid high end users in the dust unable to mine emerging cryptos. As far as ProgPow, again its an established algo for GPU miners, and thanks to many cryptos starting with Bitcoin/Monero/Ethe etc there is no shortage of GPU rigs out there :) plus again the casual user with a video gaming caliber card can get in on the action.
Oleg✌🏻 Perfect! It was a great AMA, but it is coming to an end, thanks to everyone who was with us. Thanks EPIC team for taking the time👏. I hope our projects will be able to collaborate even more closely in the future and achieve new successes. Cheers!🎉
submitted by EpicCashFrodo to epiccash [link] [comments]

Staking — The New Way to Earn Crypto for Free

Staking — The New Way to Earn Crypto for Free

https://preview.redd.it/jpadsinyz3c41.png?width=616&format=png&auto=webp&s=c0dc410484430b863b0488727f92135f218edff2
Airdrops are so 2017, free money was fun while it lasted but now when someone says free money in crypto, the first thoughts are scams and ponzi schemes. But in 2020, there is a way to earn free money, in a legitimate, common practice, and logical manner — staking.
Staking is the core concept behind the Proof-of-Stake (PoS) consensus protocol that is quickly becoming an industry standard throughout blockchain projects. PoS allows blockchains to scale effectively without compromising on security and resource efficiency. Projects that incorporate staking include aelf, Dash, EOS, Cosmos, Cardano, Dfinity and many others.

https://preview.redd.it/luczupo004c41.png?width=616&format=png&auto=webp&s=2a2aba11c35c9962e42d1ea56b9e4f33532750ef

PoW — Why change

First, let’s look at some of the issues facing Proof-of-Work (PoW) consensus that led to the development of PoS.
  1. Excessive energy consumption — In 2017, many concerns were raised over the amount of electricity used by the bitcoin network (Largest PoW blockchain). Since then the energy consumption has increased by over 400%, to the point where 1 single transaction on this network has the same carbon footprint of 736,722 Visa transactions or consumes the same amount of electricity as over 20 U.S. households.
  2. Varying Electricity Costs — The profit of any miner on the network is tied to two costs, the initial startup cost to obtain the hardware and infrastructure, and more critically, the running cost of said equipment in relation to electricity usage. Electricity costs can vary from fractions of a cent per kWh to over 50 cents (USD) and in some cases it is free. When a user may only be earning $0.40 USD per hour then this will clearly rule out certain demographics based purely on electricity costs, reducing the potential for complete decentralization.
  3. Reduced decentralization — Due to the high cost of the mining equipment, those with large financial bases setup mining farms, either for others to rent out individual miners or entirely for personal gains. This results in large demographic hotspots on the network reducing the decentralized aspect to a point where it no longer accomplishes this aspect.
  4. Conflicted interests — The requirements of running miners on the network are purely based on having possession of the hardware, electricity and internet connection. There are no limits to the amount a miner can earn, nor do they need to hold any stake in the network, and thus there is very little incentive for them to vote on upgrades that may benefit the network but reduce their rewards.
I want to take this moment to mention a potential benefit to PoW that I have not seen anyone mention previously. It is a very loose argument so don’t take this to heart too strongly.
Consistent Fiat Injection — The majority of miners will be paying for their electricity in fiat currency. At a conservative rate of $0.1 USD per kWh, the network currently uses 73.12 TWh per year. This equates to an average daily cost of over $20 million USD. This means every day around $20 million of fiat currency is effectively being injected into the bitcoin network. Although this concept is somewhat flawed in the sense that the same amount of bitcoin will be released each day regardless of how much is spent on electricity, I’m looking at this from the eyes of the miners, they are reducing their fiat bags and increasing their bitcoin bags. This change of bags is the essence of this point which will inevitably encourage crypto spending. If the bitcoin bags were increased but fiat bags did not decrease, then there would be less incentive to spend the bitcoin, as would see in a staking ecosystem.

https://preview.redd.it/8dtqt6e204c41.png?width=631&format=png&auto=webp&s=065aedde87b55f0768968307e59e62a35eac949d

PoS Variations

Different approaches have been taken to tackle different issues the PoS protocol faces. Will Little has an excellent article explaining this and more in PoS, but let me take an excerpt from his piece to go through them:
  • Coin-age selection — Blockchains like Peercoin (the first PoS chain), start out with PoW to distribute the coins, use coin age to help prevent monopolization and 51% attacks (by setting a time range when the probability of being selected as a node is greatest), and implement checkpoints initially to prevent NoS problems.
  • Randomized block selection — Chains like NXT and Blackcoin also use checkpoints, but believe that coin-age discourages staking. After an initial distribution period (either via PoW or otherwise), these chains use algorithms to randomly select nodes that can create blocks.
  • Ethereum’s Casper protocol(s) — Being already widely distributed, Ethereum doesn’t have to worry about the initial distribution problem when/if it switches to PoS. Casper takes a more Byzantine Fault Tolerant (BFT) approach and will punish nodes by taking away (“slashing”) their stake if they do devious things. In addition, consensus is formed by a multi-round process where every randomly assigned node votes for a specific block during a round.
  • Delegated Proof-of-Stake (DPoS) — Invented by Dan Larimer and first used in Bitshares (and then in [aelf,] Steem, EOS, and many others), DPoS tackles potential PoS problems by having the community “elect” delegates that will run nodes to create and validate blocks. Bad behavior is then punished by the community simply out-voting the delegated nodes.
  • Delegated Byzantine Fault Tolerance (DBFT) — Similar to DPoS, the NEO community votes for (delegates) nodes, but instead of each node producing blocks and agreeing on consensus, only 2 out of 3 nodes need to agree on what goes in every block (acting more like bookkeepers than validators).
  • Tendermint — As a more sophisticated form of DBFT and a precursor to Casper, Jae Kwon introduced tendermint in 2014, which leverages dynamic validator sets, rotating leader elections, and voting power (i.e. weight) that is proportional to the self-funding and community allocation of tokens to a node (i.e. a “validator”).
  • Masternodes — First introduced by DASH, a masternode PoS system requires nodes to stake a minimum threshold of coins in order to qualify as a node. Often this comes with requirements to provide “service” to a network in the form of governance, special payment protocols, etc…
  • Proof of Importance (POI)NEM takes a slightly different approach by granting an “importance calculation” to masternodes staking at least 10,000 XEM. This POI system then rewards active nodes that act in a positive way over time to impact the community.
  • “Proof-of-X” — And finally, there is no lack of activity in the PoS world to come up with clever approaches and variants of staking (some are more elaborate than others). In addition to BFT protocols such as Honeybadger, Ouroboros, and Tezos, for further reading, also check out “Proof-of-”: Stake Anonymous, Storage, Stake Time, Stake Velocity, Activity, Burn, and Capacity.
https://preview.redd.it/n28a8n5404c41.png?width=604&format=png&auto=webp&s=0ea8827fd0458e768d4eb3a0a1fa88c984ba0a82

Earning Your Stake

In order to understand how one can earn money from these networks, I’ll break them down into 3 categories: Simple staking, Running nodes, and Voting.
Simple Staking - This is the simplest of the 3 methods and requires almost no action by the user. Certain networks will reward users by simply holding tokens in a specified wallet. These rewards are generally minimal but are the easiest way to earn.
Running a node - This method provides the greatest rewards but also requires the greatest action by the user and most likely will require ongoing maintenance. Generally speaking, networks will require nodes to stake a certain amount of tokens often amounting to thousands of dollars. In DPoS systems, these nodes must be voted in by other users on the network and must continue to provide confidence to their supporters. Some companies will setup nodes and allow users to participate by contributing to the minimum staking amount, with a similar concept to PoW mining pools.
Voting - This mechanism works hand in hand with running nodes in relation to DPoS networks. Users are encouraged to vote for their preferred nodes by staking tokens as votes. Each vote will unlock a small amount of rewards for each voter, the nodes are normally the ones to provide these rewards as a portion of their own reward for running a node.

Aelf’s DPoS system

The aelf consensus protocol utilizes a form of DPoS. There are two versions of nodes on the network, active nodes & backup nodes (official names yet to be announced). Active nodes run the network and produce the blocks, while the backup nodes complete minor tasks and are on standby should any active nodes go offline or act maliciously. These nodes are selected based upon their number of votes received. Initially the top 17 nodes will be selected as active nodes, while the next 100 will stand as the backup ones, each voting period each node may change position should they receive more or less votes than the previous period. In order to be considered as a node, one must stake a minimum amount of ELF tokens (yet to be announced).

https://preview.redd.it/47d3wqe604c41.png?width=618&format=png&auto=webp&s=062a6aa6186b826d400a0015d4c91fd1a4ed0b65
In order to participate as a voter, there is no minimum amount of tokens to be staked. When one stakes, their tokens will be locked for a designated amount of time, selected by the voter from the preset periods. If users pull their tokens out before this locked period has expired no rewards are received, but if they leave them locked for the entire time frame they will receive the set reward, and the tokens will be automatically rolled over into the next locked period. As a result, should a voter decide, once their votes are cast, they can continue to receive rewards without any further action needed.
Many projects have tackled with node rewards in order to make them fair, well incentivized but sustainable for everyone involved. Aelf has come up with a reward structure based on multiple variables with a basic income guaranteed for every node. Variables may include the number of re-elections, number of votes received, or other elements.
As the system matures, the number of active nodes will be increased, resulting in a more diverse and secure network.
Staking as a solution is a win-win-win for network creators, users and investors. It is a much more resource efficient and scalable protocol to secure blockchain networks while reducing the entry point for users to earn from the system.
submitted by Floris-Jan to aelfofficial [link] [comments]

Introduction and overview of the Bitcoin system

In relation to this post:
https://www.reddit.com/btc/comments/eupegk/technical_review_of_the_past_10_years_and_how_the/
We put together an introductory overview of the Bitcoin System. As this is intended to help increase public understanding of BTC and thus increase it's adoption. What will you learn from the text:
If you do decide to go through the text would love some feedback. Was it clear? Did you get any value from it? Anything that needs to be expanded on? - we are really excited about this project and hope to make it to the best of our abilities.
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1 Introduction to the Bitcoin System

1.1 Introduction and General Description

There are many definitions and descriptions of Bitcoin. Some describe it as an innovative virtual or crypto currency, some as the system for peer-to–peer electronic cash payment transactions, and some others as decentralized platform and infrastructure for anonymous payment transactions using any type of crypto currency.
In this Report we will adopt the concept that the Bitcoin system is a payment system. It has its own features, its own currency, its own protocols and components, and with all that Bitcoin supports payment transactions. In other words, the core function of the Bitcoin system is to support payments between two parties – the party that makes a payment and the party that receives the payment.
Based on the original concept and the description of the Bitcoin [Bitcoin, 2016], “it is a decentralized digital currency that enables instant payments to anyone, anywhere in the world. Bitcoin uses peer-to-peer technology to operate with no central authority: transaction management and money issuance are carried out collectively by the network”.
The system is decentralized since its supporting platform blockchain, comprises an infrastructure of multiple distributed servers, mutually linked by an instantaneous broadcasting protocol. Users perform transactions within the open and distributed community of registered users. Digital currency used in the system is not electronic form of fiat currency, but a special form of the currency generated and used only within the Bitcoin system. This concept is based on the notion that money can be interpreted as any object, or any sort of record, that is accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. Bitcoin system is designed around the idea of using cryptography to control the creation and transfer of money, rather than relying on central authorities.
There are several important requirements when making any type of payment and with any currency. The best example of a “perfect” payment transaction that meets all these requirements is payment using cash over-the-counter. When a consumer pays to a merchant using cash over-the-counter, such transaction satisfies all requirements and expectations of both parties. First, the transaction is instantaneous, as the paper bill is transferred hand-to-hand, from the consumer to the merchant. The transaction is cheap, in fact there is no overhead charge to perform transaction, so the merchant receives the full amount. The transaction is irreversible, what is the property beneficial to merchants. The transaction is legal, as the merchant can verify the legality of the paper bill. And, finally, the transaction is anonymous for the consumer as he/she does not need to reveal his/her identity.
The only “problem” with cash over-the-counter is the cash itself, as using and handling cash has many disadvantages.
Bitcoin concept and system solves all issues and problems with the use of cash, but at the same time provides all advantages when performing transactions using digital and communication technologies. So, paying with Bitcoins is effectively payment transaction that uses “digital cash over-the-counter”. The concept of the Bitcoin system provides all advantages and benefits mentioned above with payments using cash over-the-counter, but eliminates the problems of using cash. That is the reason why Bitcoins are often referred to as “digital cash”.
One of significant features of payments using cash over-the-counter is that there are no third parties to participate or assist in the execution and validation of a transaction. This feature makes Bitcoin transactions very efficient and also very cheap to perform. Other types of todays payment systems, for instance using bank-to-bank account transfers or using bankcards, use many additional intermediate parties and use very complicated background infrastructure to validate and clear payment transactions. These infrastructures are complex to establish and operate, they are expensive, and they are vulnerable to attacks and penetrations by hackers. Bitcoin does not use such complex infrastructures, what is the reason that its transactions are efficient and cheap. An additional problem with third-party transaction players is that transaction parties must put the complete trust in all these parties without any means to verify their functionality, correctness, or security.
Bitcoin system uses public-key cryptography to protect the currency and transactions. Logical relationships between transaction parties is direct, peer-to-peer, and the process of validating transactions is based on cryptographic proof-of-work. When performing a transaction, the net effect is that certain amount of Bitcoins is transferred from one cryptographic address to another. Each user may have and use several addresses simultaneously. Each payment transaction is broadcast to the network of distributed transaction processing servers. These servers collect individual transactions, package them into blocks, and send them for validation.
Each block is cryptographically processed by the large number of so called “miners”. They each attempt to create cryptographic hash value that has special form. This is computationally very difficult and time-consuming task, therefore, it is very difficult to perform and repeat. Individual blocks are validated using cryptographic processing procedures that require substantial amount of work and computing power.
Approximately an hour or two after submitting the transaction for validation, each transaction is locked in time and by cryptographic processing by the massive amount of computing power that was used to complete the block. When the block is validated, it is added to the chain of all previous blocks, thus forming a public archive of all blocks and transactions in the system.
One of the most important problems with uncontrolled digital currency, where there are no third parties to validate and approve transactions, is so called double spending. Since the currency is digital, stored at user’s local workstations, in mobile phones, or on network servers, it can be easily copied and sent to multiple recipients multiple times.
Bitcoin system solves this problem with a very interesting approach. It is the first effective example of the solution for the double-spending problem without the need for assistance of any third party. Bitcoin solves this problem by keeping and distributing an archive of all transactions among all the users of the system via a peer-to-peer distribution network. Every transaction that occurs in the Bitcoin system is recorded in that public and distributed transactions ledger. Since the components in that ledger are blocks with transactions and the blocks are “chained” in time and in a cryptographic sequence, the ledger in the Bitcoin system is called blockchain.
That full blockchain of all transactions that were performed in the Bitcoin system before the specific transaction can be used to verify new transactions. The transactions are verified against the blockchain to ensure that the same Bitcoins have not been previously spent. This approach eliminates the double-spending problem. The essence of the verification procedure for a single transaction in fact is the test of the balance of the sending account. The test is very normal and natural: payment of a certain amount of the currency can be made only of the balance of the outgoing account is equal or larger than the payment amount. Current balance of an account is established by tracing all incoming and outgoing transactions for that account.
The procedure to verify the validity of individual transactions and to prevent double-spending is based on the use of special type of cryptographic protocol called public-key cryptography. With this type of cryptographic systems each user has two cryptographic keys. They are mutually related in the sense that, what ever the one key encrypts, the other key can decrypt. One of the two keys is a private key that is kept secret, and the other key is public key that can be shared with all other users in the system. When a user wants to make a payment to another user, the sender transfers certain amount of Bitcoins from his/her account to the account of the receiver. This action is performed by the sender by creating a payment message, called a “transaction,” which contains recipient’s public key – receiving address and payment amount. The transaction is cryptographically processed by the sender’s private key, the operation called digital signing, and as the result digital signature is created and appended to the transaction.
By using sender’s private key every user in the system can verify that the transaction was indeed created by the indicated sender, as his/her private key can successfully decrypt the content of the digital signature. The exchange is authentic, since the transaction was also cryptographically processed with the recipient’s public key, the operation which is called digital enveloping. This transformation guarantees that the transaction can be accepted and processed only by the holder of the corresponding private key, which is the intended recipient.
Every transaction, and thus the transfer of ownership of the specified amount of Bitcoins, is inserted, then time-stamped, and finally displayed in one “block” of the blockchain. Public-key cryptography ensures that all computers in the network have a constantly updated and verified record of all transactions within the Bitcoin network, which prevents double-spending and fraud.

1.2 The Concept and Features of the Bitcoin System

There are many concepts and even more operational payment systems today in the world. Some are standard paper–based, some are digital and network based. What makes Bitcoin unique and distinctive, compared with all other payment systems that are in use today, are several of its core features.
The first of them is that the system uses its own currency. The reason for using its own currency is to make the system independent of financial institutions as trusted third parties. The unit of the currency is called Bitcoin. The currency is so called crypto currency, because it is generated and used based on execution of certain cryptographic algorithms and protocols. Performing specific cryptographic protocols is in the heart of operations to create new Bitcoins, to transfer them between transaction parties, and to validate the correctness of transactions.
Since appearance of Bitcoins, several new systems were introduced that use cryptography to manage its own currency, so all such currencies represent the category of crypto currencies. Later in this Report, some other digital / virtual currencies will be described that are created and managed using some other principles, so they are not called crypto currency. At the time of writing this Report, all such digital virtual currencies were called with general term tokens, sometimes also digital assets tokens. The reason is that they were created by the process called collateralization and therefore they are related to the value of some categories of real world assets which is expressed in digital tokens units.
The second interesting and important feature of the Bitcoin system is that the logical relationship between the two transaction parties is direct, peer-to–peer, i.e. there are no other parties that participate in the transaction. This is an important feature and benefit / advantage of the system that contributes to its efficiency when compared with the todays complex and expensive financial payment infrastructures and protocols. However, for distribution of transactions to their validators and later to all other members in the Bitcoin system the physical flow of each transaction is very complex and includes many parties.
It should be emphasized that performing transactions as direct, peer-to–peer transfers is one of the key features and the most significant reason for many benefits and advantages of the Bitcoin system. This approach is the key feature of the Bitcoin system as it enables security and anonymity of parties, efficiency in performing transactions, scaling of the system, and instantaneous settlement of payments. Therefore, supporting execution and validation of serious business peer–to–peer transactions is one of the core benefits of the blockchain concept, as it changes the current paradigm of Internet applications and transactions. Currently all Internet applications are organized and performed as client–server transactions. Such transactions are not efficient, do not provide sufficient privacy of participants, have dependencies on third parties and usually are vulnerable due to attacks of functional problems with large centralized application servers.
The next very important characteristic of the Bitcoin system is anonymity of users, their accounts, and transactions. This property means that the identities of the participants in the system are not known even to the partners performing a payment transaction. All other system operations – receiving payments, making payments, validating transactions, etc. are also performed anonymously. Interpreting this property correctly, the anonymity of transaction participants is so called pseudo-anonymity. Namely, in the process of validating transactions, all previous transactions of the sender are traced back to the original initial transaction. If that initial transaction was the purchase of Bitcoins at some Bitcoin Exchange, then the identity of the original owner of Bitcoins is known. Most if not all service providers in the Bitcoin system today require very strict identification of participants for the purpose of enforcing legal and regulated transactions and include certain restrictions of transaction frequency and amounts. This procedure, although understandable from the legal and regulatory point of view, has in fact in essence changed one of the core principles of the original concept of the Bitcoin system – full anonymity of users.
Better solution for fully anonymous payment transactions is so called zero–knowledge protocol, where the identity and authorization to perform Bitcoin transactions, is validated by anyone without revealing any identity information of the parties. The only problem with this approach is revealing the identity of transaction participants to law enforcement authorities in case of illegal transactions. But, such authorities have special authorization under the law and they should be enabled to get identifying information about transaction participants in the process of legal law enforcement procedures. But, all other service providers do not have such status, so if Bitcoin principles are strictly followed, they should not be able to have identifying information about system participants.
This approach and potential improvement of the Bitcoin system implies that the system needs one of the classical security services: role–based authorization. In such arrangement, there would be at least two categories of system participants: those that are authorized to maintain and access identifying information about the participants and those that are only authorized to perform transactions. In the first category are legal authorities, like police, driving license authorities, tax authorities, etc. In the context of the standard Identities Management Systems, such participants are called Identity Providers. All others are Identity Verifiers. Therefore, one of the main conclusions about true anonymity in the Bitcoin system is establishment of a sophisticated and multi-role Identities Management System, where some parties will be authorized Identity Providers and all others will be Identity Validators. Finally, referring back to the infrastructure of the Bitcoin system to perform and validate transactions – blockchain, the conclusion is that what is needed, as one of the most important extensions of the current concept of anonymity of Bitcoins participants, is an Identity Management System based itself on the use of blockchain and without Identity Providers as trusted third parties. Creation, distribution, use and validation of identities are transactions in the system, equivalent to payment transactions, so they should also be performed using blockchain protocol. Such system, that can provide reliable identities of all participants may be called Blockchain Identity Management System.
Another very important feature of the original concept of the Bitcoin system is that it is not controlled by any financial institution, by any regulatory body or by any legal financial authority when it comes to issuing Bitcoins and determining their value. This means that the currency used in the system and all transactions are exempted from any legal and financial rules and regulations. The rules controlling Bitcoin system are built in its code. This property is usually called “rule by the technical code”, as the rules of system operations, built in the code of its operational components, control and rule the operations of the system [UK, 2016], Chapter 3. This property is sometimes described as “control by the community”, i.e. the participating users.
This property implies that the value of Bitcoins is determined solely on the market – based on its supply and demand. This is quite natural approach, as the value of shares of companies are also determined on an open trading market. However, such approach implies that the value of Bitcoin, as crypto currency, is volatile related to fiat currencies. This property represent serious problem to perform payments using Bitcoin. It is well-known that volatile currencies are not suitable for payments. The practice of all the years while Bitcoins are in use has shown that its volatility represents one of the major obstacles for its main purpose – to be used as the payment system. In fact, it was announced that in 2019 the total value of Bitcoin transactions performed was about $ 11 T. However, unfortunately, only about 1.3% of those transactions were payments, all others were trading manipulations on exchanges. Based on that, it may be clearly stated that Bitcoin today is not used as the payment system, but as currency manipulation system. This is one of the main problems with the concept and current implementation and deployment of Bitcoin system and in near future may represent the main reason for its decline in popularity.

1.3 Innovative Contributions of the Bitcoin System

Besides an effective procedure to transfer an amount of crypto currency from one user (account) to another user (account), the major and indeed an essential contribution of the concept of the Bitcoin is the solution to the general problem how to establish trust between two mutually unknown and otherwise unrelated parties to such an extent and certainty that sensitive and secure transactions can be performed with full confidence over an open environment, such as Internet. In all current large scale and not only financial systems that problem is solved by using the assistance of third parties. For many (may be even all) current Internet applications and transactions those third parties are integrated and linked into a large, complex, expensive and vulnerable operational infrastructures. Examples of such infrastructures today are bankcard networks supporting global international payments, global international banking networks supporting international financial transfers, Public–Key Infrastructures (PKI), Identity Management Systems, and many others. It is a general consent that such infrastructures are expensive and, more important, vulnerable to external and internal attacks.
In addition to the complexity and vulnerabilities of such current operational supporting infrastructures, another requirement and prerequisite to use their services is that users must put the complete trust in these third parties. Accepting to trust those third–party service providers is the necessary and mandatory prerequisite to use their services.
Therefore, one of the most important contributions of the concept of Bitcoin is that it solves the issue how two parties, mutually unknown to each other in advance and otherwise completely unrelated, can perform sensitive and secure transactions, such as transfer of money – payments, but without assistance of any third party and without the need to place trust in any component of the system.
The practical benefits of solving this problem and the most important consequence of the solution for this problem – Bitcoin system, is that it provides the possibility for one Internet user to transfer not only Bitcoins, but also any other form of digital asset to or shared with another Internet user, such that the transfer is guaranteed to be safe and secure, that everyone knows that the transfer has been performed, and nobody can challenge the legitimacy of the transfer.
This feature of the Bitcoin system generated many very new, creative and innovative ideas where the concept equivalent to the Bitcoin can be used to perform secure and reliable transactions between users in an open community handling any type of digital asset ([Andreesen, 2014], [Sparkes, 2014], [UniCredit, 2016], [BitID, 2015], [PoE, 2015]). The examples of such applications and transactions range from commercial transitions, real estate transactions, energy trading, electronic voting, medical applications, and many others ([Kounelis, 2015], [Muftic, 2016]). The concept of blockchain as technology supporting validation of all such transactions is therefore called disruptive technology.
As the conclusion in this section, we may give a definition of blockchain:
Blockchain is an innovative concept, implemented as an infrastructure comprising multiple and distributed servers, mutually linked by special broadcasting and synchronization protocols, managing immutable objects with the purpose to enable and protect secure peer–to–peer transactions in a global and open environment.

1.4 Summary of Problems and Potential Solutions

In section 1.2 several problems of the Bitcoin system were mentioned and potential solutions for these problems were outlined. Recently, at the time of writing this Technical Report, several sources, mainly personal blogs and articles, appeared with very interesting opinions and statements regarding some other serious Bitcoin problems. Some of them are problems with the concept of the system, some problems of its design, and some problems of operations. In this section some of these problems are briefly summarized including suggestions for their potential solutions. The source of some problems was the article [Ein, 2018].
Problem 1: Complex Crypto Algorithms
Problem: Bitcoins is crypto currency and cryptographic algorithms used in the current version are very complex, based on the concept of proof–of–work, and require long time, special hardware and a lots of energy to perform
Potential Solution: Potential solution fro this problem is to use cryptographic algorithms that are simpler and therefore more efficient to execute and need less energy
Problems with Potential Solution: Lowering the complexity of crypto algorithms introduces vulnerability to hackers. Therefore, what is needed are strong algorithms and simple to perform for regular users and complex to break by hackers
Problem 2: Indirect Transactions, not Peer–to–Peer
Problem: Contrary to the concept claimed, in todays implementation Bitcoin payment transactions are not performed as direct, peer–to–peer transactions. They are performed indirectly, submitted to the Bitcoin network, and recipients receive them indirectly, by downloading validated transactions from the ledger
Potential Solution: Transactions should be performed directly, by transferring them directly between two users
Problems with Potential Solution: The problem with the potential solution is validation of transaction for proof of possession of Bitcoins by the sender and for prevention of double-spending. Therefore, what is needed is the protocol to validate peer–to–peer transactions.
Problem 3: Anonymity of Users not provided
Problem: Contrary to the concept claimed, in todays deployments of additional system components, mainly exchanges, users are not anonymous
Potential Solution: Blockchain–based Distributed Identity Management System with Role-based Authorizations
Problems with Potential Solution: The problem with potential solution is that it depends on trusted third parties with authorized roles. Therefore, what is needed is blockchain-based Identity Management System using hybrid (permissioned and unpermissioned) blockchain
Problem 4: Volatile Value, not suitable for Payments
Problem: Contrary to the concept claimed that Bitcoin is payment system, volatile value of the currency makes it inconvenient for payments
Potential Solution: Crypto currency with stable value
Problems with Potential Solution: The problem with the potential solution is that the value of Bitcoins is determined on the secondary market, during its trading (cash-in / cash-out). Therefore, what is needed is crypto currency that does not have volatile value
The remaining problems in this section are quoted from [Ein, 2018]:
Problem 5: Negative Environmental Impact
Problem: Mining algorithms and operational facilities (“mining farms”) consume too much electrical energy, based on the “proof-of-work” protocol
Potential Solution: Using mining algorithms that consume less energy, either as simpler / lighter crypto algorithms or using alternative crypto protocols to protect transactions integrity (“proof-of-stake”)
Problems with Potential Solution: The problem with the potential solution is that simpler / lighter algorithms open vulnerabilities to hackers while alternative crypto protocols are not backward compatible with the current system
Problem 6: Slow Performance (Delays) / Low Throughput
Problem: Due to blocking and the designed time for protection of transactions (10 minutes) Bitcoin system has very slow performance – transactions are validated in about an hour and transaction processing throughput is about 7 transactions per second
Potential Solution: Using transaction validation algorithms and protocols that do not need blocking of transactions, but transactions should be validated individually
Problems with Potential Solution: There are no serious problems with the proposed potential solution
Problem 7: Limited Number of Bitcoins
Problem: Due hardware and other types of failures, the number of available Bitcoins in the system is constantly reducing
Potential Solution: Potential solution could be to use smaller portions of Bitcoin (“Satoshi”) or introduce hard-fork by splitting the amount of available Bitcoins
Problems with Potential Solution: The problems with the first solution that it is not user-friendly and the problem with the second solution is backwards compatibility.
Problem 8: Real Value of Bitcoins
Problem: The value of Bitcoins is purely psychological and reflects only pure market speculations
Potential Solution: Potential solution could be to peg the value of Bitcoin to local fiat currencies in countries of deployments
Problems with Potential Solution: The problems with the potential solution is that such Bitcoins would be a new class of Bitcoins, not traded on exchanges and not volatile
At the end of this section, it is very interesting to quote two opinions about the future of Bitcoin and blockchain:
[Ein, 2018]: “It seems that Bitcoin will likely cease to have meaningful value*, defeating the whole point and philosophy imagined by Satoshi Nakamoto, the alleged inventor of Bitcoin. Its current value appears to be purely psychological, and the hype seems to be driven by irrational exuberance, greed and speculation. Modern human history has seen many* bubbles*, including the dot-com bubble, the housing bubble and even the tulip bubble. However, when these bubbles exploded, many excellent dot-com companies survived, most houses regained their value and tulips still have meaning and carry value in our lives today. But what will happen when the Bitcoin bubble bursts? What* utility or residual value will Bitcoin have to consumers and businesses? Most likely none*. And this is the real problem with Bitcoin and crypto currencies.*
Bitcoin will likely go down in history as a great technological invention that popularized blockchain yet failed due to its design limitations*. Just like the industrial revolution was fueled by the combustion engine, Nakamoto’s most valuable contribution is the* blockchain polymorphic engine that will further accelerate innovation in the post-information age and immensely affect our lives”.
This quote makes two very important and far–reaching predictions:
(1) Bitcoin, as the payment system will disappear (“. . . will go down in history”), and
(2) The most valuable contribution of the Bitcoin system is blockchain
This article was written in 2018. It is very interesting to notice that at the time of writing this Technical Report, (1) Bitcoin was still “alive” and (2) the concept and deployments of blockchain were in serious trouble.
Based on the principle of positive and creative approach, in the rest of this Technical Report, besides description of all technical details of the Bitcoin system, some potential solutions for its improvement will also be discussed.
However, contrary to the predicted status of Bitcoin, it seems that the predicted status of blockchain, in 2020 was still facing serious problems.
[Barber, 2019]: What's Blockchain Actually Good for, Anyway? For Now, Not Much
“Not long ago, blockchain technology was touted as a way to track tuna, bypass banks, and preserve property records. Reality has proved a much tougher challenge”.

[Lucanus, 2020]: Has Blockchain Failed Before It Even Really Began?

“Just as everyone was getting really excited about its potential, it appears blockchain is dead. For a technology that was supposed to transform and solve seemingly every problem in the world, the enthusiasm is fading pretty quickly”.
At the time of writing this Technical Report, there were many new blockchain – concepts, design and even several deployed and operational instances. Some of them are even very popular, but only among enthusiastic developers. The overall trends with real life deployments, and more and more comments about the capabilities and features of blockchains are appearing with negative connotation. Therefore, seems that even for blockchain some innovative concepts and approaches are needed. They are beyond the scope of this Technical Report and will be addressed in some of our follow-up reports.
submitted by Theus5 to btc [link] [comments]

Introduction and overview of the Bitcoin system

Based on this post I made a bit earlier:
https://www.reddit.com/BitcoinBeginners/comments/euozq4/blockchain_and_btc_technical_review_of_the_past/
We put together an introductory overview of the Bitcoin System. As this is intended for beginners I think this subreddit would be a good place to get some feedback. What will you learn from the text:
If you do decide to go through the text would love some feedback. Was it clear? Did you get any value from it? Anything that needs to be expanded on?
----

1 Introduction to the Bitcoin System

1.1 Introduction and General Description

There are many definitions and descriptions of Bitcoin. Some describe it as an innovative virtual or crypto currency, some as the system for peer-to–peer electronic cash payment transactions, and some others as decentralized platform and infrastructure for anonymous payment transactions using any type of crypto currency.
In this Report we will adopt the concept that the Bitcoin system is a payment system. It has its own features, its own currency, its own protocols and components, and with all that Bitcoin supports payment transactions. In other words, the core function of the Bitcoin system is to support payments between two parties – the party that makes a payment and the party that receives the payment.
Based on the original concept and the description of the Bitcoin [Bitcoin, 2016], “it is a decentralized digital currency that enables instant payments to anyone, anywhere in the world. Bitcoin uses peer-to-peer technology to operate with no central authority: transaction management and money issuance are carried out collectively by the network”.
The system is decentralized since its supporting platform blockchain, comprises an infrastructure of multiple distributed servers, mutually linked by an instantaneous broadcasting protocol. Users perform transactions within the open and distributed community of registered users. Digital currency used in the system is not electronic form of fiat currency, but a special form of the currency generated and used only within the Bitcoin system. This concept is based on the notion that money can be interpreted as any object, or any sort of record, that is accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. Bitcoin system is designed around the idea of using cryptography to control the creation and transfer of money, rather than relying on central authorities.
There are several important requirements when making any type of payment and with any currency. The best example of a “perfect” payment transaction that meets all these requirements is payment using cash over-the-counter. When a consumer pays to a merchant using cash over-the-counter, such transaction satisfies all requirements and expectations of both parties. First, the transaction is instantaneous, as the paper bill is transferred hand-to-hand, from the consumer to the merchant. The transaction is cheap, in fact there is no overhead charge to perform transaction, so the merchant receives the full amount. The transaction is irreversible, what is the property beneficial to merchants. The transaction is legal, as the merchant can verify the legality of the paper bill. And, finally, the transaction is anonymous for the consumer as he/she does not need to reveal his/her identity.
The only “problem” with cash over-the-counter is the cash itself, as using and handling cash has many disadvantages.
Bitcoin concept and system solves all issues and problems with the use of cash, but at the same time provides all advantages when performing transactions using digital and communication technologies. So, paying with Bitcoins is effectively payment transaction that uses “digital cash over-the-counter”. The concept of the Bitcoin system provides all advantages and benefits mentioned above with payments using cash over-the-counter, but eliminates the problems of using cash. That is the reason why Bitcoins are often referred to as “digital cash”.
One of significant features of payments using cash over-the-counter is that there are no third parties to participate or assist in the execution and validation of a transaction. This feature makes Bitcoin transactions very efficient and also very cheap to perform. Other types of todays payment systems, for instance using bank-to-bank account transfers or using bankcards, use many additional intermediate parties and use very complicated background infrastructure to validate and clear payment transactions. These infrastructures are complex to establish and operate, they are expensive, and they are vulnerable to attacks and penetrations by hackers. Bitcoin does not use such complex infrastructures, what is the reason that its transactions are efficient and cheap. An additional problem with third-party transaction players is that transaction parties must put the complete trust in all these parties without any means to verify their functionality, correctness, or security.
Bitcoin system uses public-key cryptography to protect the currency and transactions. Logical relationships between transaction parties is direct, peer-to-peer, and the process of validating transactions is based on cryptographic proof-of-work. When performing a transaction, the net effect is that certain amount of Bitcoins is transferred from one cryptographic address to another. Each user may have and use several addresses simultaneously. Each payment transaction is broadcast to the network of distributed transaction processing servers. These servers collect individual transactions, package them into blocks, and send them for validation.
Each block is cryptographically processed by the large number of so called “miners”. They each attempt to create cryptographic hash value that has special form. This is computationally very difficult and time-consuming task, therefore, it is very difficult to perform and repeat. Individual blocks are validated using cryptographic processing procedures that require substantial amount of work and computing power.
Approximately an hour or two after submitting the transaction for validation, each transaction is locked in time and by cryptographic processing by the massive amount of computing power that was used to complete the block. When the block is validated, it is added to the chain of all previous blocks, thus forming a public archive of all blocks and transactions in the system.
One of the most important problems with uncontrolled digital currency, where there are no third parties to validate and approve transactions, is so called double spending. Since the currency is digital, stored at user’s local workstations, in mobile phones, or on network servers, it can be easily copied and sent to multiple recipients multiple times.
Bitcoin system solves this problem with a very interesting approach. It is the first effective example of the solution for the double-spending problem without the need for assistance of any third party. Bitcoin solves this problem by keeping and distributing an archive of all transactions among all the users of the system via a peer-to-peer distribution network. Every transaction that occurs in the Bitcoin system is recorded in that public and distributed transactions ledger. Since the components in that ledger are blocks with transactions and the blocks are “chained” in time and in a cryptographic sequence, the ledger in the Bitcoin system is called blockchain.
That full blockchain of all transactions that were performed in the Bitcoin system before the specific transaction can be used to verify new transactions. The transactions are verified against the blockchain to ensure that the same Bitcoins have not been previously spent. This approach eliminates the double-spending problem. The essence of the verification procedure for a single transaction in fact is the test of the balance of the sending account. The test is very normal and natural: payment of a certain amount of the currency can be made only of the balance of the outgoing account is equal or larger than the payment amount. Current balance of an account is established by tracing all incoming and outgoing transactions for that account.
The procedure to verify the validity of individual transactions and to prevent double-spending is based on the use of special type of cryptographic protocol called public-key cryptography. With this type of cryptographic systems each user has two cryptographic keys. They are mutually related in the sense that, what ever the one key encrypts, the other key can decrypt. One of the two keys is a private key that is kept secret, and the other key is public key that can be shared with all other users in the system. When a user wants to make a payment to another user, the sender transfers certain amount of Bitcoins from his/her account to the account of the receiver. This action is performed by the sender by creating a payment message, called a “transaction,” which contains recipient’s public key – receiving address and payment amount. The transaction is cryptographically processed by the sender’s private key, the operation called digital signing, and as the result digital signature is created and appended to the transaction.
By using sender’s private key every user in the system can verify that the transaction was indeed created by the indicated sender, as his/her private key can successfully decrypt the content of the digital signature. The exchange is authentic, since the transaction was also cryptographically processed with the recipient’s public key, the operation which is called digital enveloping. This transformation guarantees that the transaction can be accepted and processed only by the holder of the corresponding private key, which is the intended recipient.
Every transaction, and thus the transfer of ownership of the specified amount of Bitcoins, is inserted, then time-stamped, and finally displayed in one “block” of the blockchain. Public-key cryptography ensures that all computers in the network have a constantly updated and verified record of all transactions within the Bitcoin network, which prevents double-spending and fraud.

1.2 The Concept and Features of the Bitcoin System

There are many concepts and even more operational payment systems today in the world. Some are standard paper–based, some are digital and network based. What makes Bitcoin unique and distinctive, compared with all other payment systems that are in use today, are several of its core features.
The first of them is that the system uses its own currency. The reason for using its own currency is to make the system independent of financial institutions as trusted third parties. The unit of the currency is called Bitcoin. The currency is so called crypto currency, because it is generated and used based on execution of certain cryptographic algorithms and protocols. Performing specific cryptographic protocols is in the heart of operations to create new Bitcoins, to transfer them between transaction parties, and to validate the correctness of transactions.
Since appearance of Bitcoins, several new systems were introduced that use cryptography to manage its own currency, so all such currencies represent the category of crypto currencies. Later in this Report, some other digital / virtual currencies will be described that are created and managed using some other principles, so they are not called crypto currency. At the time of writing this Report, all such digital virtual currencies were called with general term tokens, sometimes also digital assets tokens. The reason is that they were created by the process called collateralization and therefore they are related to the value of some categories of real world assets which is expressed in digital tokens units.
The second interesting and important feature of the Bitcoin system is that the logical relationship between the two transaction parties is direct, peer-to–peer, i.e. there are no other parties that participate in the transaction. This is an important feature and benefit / advantage of the system that contributes to its efficiency when compared with the todays complex and expensive financial payment infrastructures and protocols. However, for distribution of transactions to their validators and later to all other members in the Bitcoin system the physical flow of each transaction is very complex and includes many parties.
It should be emphasized that performing transactions as direct, peer-to–peer transfers is one of the key features and the most significant reason for many benefits and advantages of the Bitcoin system. This approach is the key feature of the Bitcoin system as it enables security and anonymity of parties, efficiency in performing transactions, scaling of the system, and instantaneous settlement of payments. Therefore, supporting execution and validation of serious business peer–to–peer transactions is one of the core benefits of the blockchain concept, as it changes the current paradigm of Internet applications and transactions. Currently all Internet applications are organized and performed as client–server transactions. Such transactions are not efficient, do not provide sufficient privacy of participants, have dependencies on third parties and usually are vulnerable due to attacks of functional problems with large centralized application servers.
The next very important characteristic of the Bitcoin system is anonymity of users, their accounts, and transactions. This property means that the identities of the participants in the system are not known even to the partners performing a payment transaction. All other system operations – receiving payments, making payments, validating transactions, etc. are also performed anonymously. Interpreting this property correctly, the anonymity of transaction participants is so called pseudo-anonymity. Namely, in the process of validating transactions, all previous transactions of the sender are traced back to the original initial transaction. If that initial transaction was the purchase of Bitcoins at some Bitcoin Exchange, then the identity of the original owner of Bitcoins is known. Most if not all service providers in the Bitcoin system today require very strict identification of participants for the purpose of enforcing legal and regulated transactions and include certain restrictions of transaction frequency and amounts. This procedure, although understandable from the legal and regulatory point of view, has in fact in essence changed one of the core principles of the original concept of the Bitcoin system – full anonymity of users.
Better solution for fully anonymous payment transactions is so called zero–knowledge protocol, where the identity and authorization to perform Bitcoin transactions, is validated by anyone without revealing any identity information of the parties. The only problem with this approach is revealing the identity of transaction participants to law enforcement authorities in case of illegal transactions. But, such authorities have special authorization under the law and they should be enabled to get identifying information about transaction participants in the process of legal law enforcement procedures. But, all other service providers do not have such status, so if Bitcoin principles are strictly followed, they should not be able to have identifying information about system participants.
This approach and potential improvement of the Bitcoin system implies that the system needs one of the classical security services: role–based authorization. In such arrangement, there would be at least two categories of system participants: those that are authorized to maintain and access identifying information about the participants and those that are only authorized to perform transactions. In the first category are legal authorities, like police, driving license authorities, tax authorities, etc. In the context of the standard Identities Management Systems, such participants are called Identity Providers. All others are Identity Verifiers. Therefore, one of the main conclusions about true anonymity in the Bitcoin system is establishment of a sophisticated and multi-role Identities Management System, where some parties will be authorized Identity Providers and all others will be Identity Validators. Finally, referring back to the infrastructure of the Bitcoin system to perform and validate transactions – blockchain, the conclusion is that what is needed, as one of the most important extensions of the current concept of anonymity of Bitcoins participants, is an Identity Management System based itself on the use of blockchain and without Identity Providers as trusted third parties. Creation, distribution, use and validation of identities are transactions in the system, equivalent to payment transactions, so they should also be performed using blockchain protocol. Such system, that can provide reliable identities of all participants may be called Blockchain Identity Management System.
Another very important feature of the original concept of the Bitcoin system is that it is not controlled by any financial institution, by any regulatory body or by any legal financial authority when it comes to issuing Bitcoins and determining their value. This means that the currency used in the system and all transactions are exempted from any legal and financial rules and regulations. The rules controlling Bitcoin system are built in its code. This property is usually called “rule by the technical code”, as the rules of system operations, built in the code of its operational components, control and rule the operations of the system [UK, 2016], Chapter 3. This property is sometimes described as “control by the community”, i.e. the participating users.
This property implies that the value of Bitcoins is determined solely on the market – based on its supply and demand. This is quite natural approach, as the value of shares of companies are also determined on an open trading market. However, such approach implies that the value of Bitcoin, as crypto currency, is volatile related to fiat currencies. This property represent serious problem to perform payments using Bitcoin. It is well-known that volatile currencies are not suitable for payments. The practice of all the years while Bitcoins are in use has shown that its volatility represents one of the major obstacles for its main purpose – to be used as the payment system. In fact, it was announced that in 2019 the total value of Bitcoin transactions performed was about $ 11 T. However, unfortunately, only about 1.3% of those transactions were payments, all others were trading manipulations on exchanges. Based on that, it may be clearly stated that Bitcoin today is not used as the payment system, but as currency manipulation system. This is one of the main problems with the concept and current implementation and deployment of Bitcoin system and in near future may represent the main reason for its decline in popularity.

1.3 Innovative Contributions of the Bitcoin System

Besides an effective procedure to transfer an amount of crypto currency from one user (account) to another user (account), the major and indeed an essential contribution of the concept of the Bitcoin is the solution to the general problem how to establish trust between two mutually unknown and otherwise unrelated parties to such an extent and certainty that sensitive and secure transactions can be performed with full confidence over an open environment, such as Internet. In all current large scale and not only financial systems that problem is solved by using the assistance of third parties. For many (may be even all) current Internet applications and transactions those third parties are integrated and linked into a large, complex, expensive and vulnerable operational infrastructures. Examples of such infrastructures today are bankcard networks supporting global international payments, global international banking networks supporting international financial transfers, Public–Key Infrastructures (PKI), Identity Management Systems, and many others. It is a general consent that such infrastructures are expensive and, more important, vulnerable to external and internal attacks.
In addition to the complexity and vulnerabilities of such current operational supporting infrastructures, another requirement and prerequisite to use their services is that users must put the complete trust in these third parties. Accepting to trust those third–party service providers is the necessary and mandatory prerequisite to use their services.
Therefore, one of the most important contributions of the concept of Bitcoin is that it solves the issue how two parties, mutually unknown to each other in advance and otherwise completely unrelated, can perform sensitive and secure transactions, such as transfer of money – payments, but without assistance of any third party and without the need to place trust in any component of the system.
The practical benefits of solving this problem and the most important consequence of the solution for this problem – Bitcoin system, is that it provides the possibility for one Internet user to transfer not only Bitcoins, but also any other form of digital asset to or shared with another Internet user, such that the transfer is guaranteed to be safe and secure, that everyone knows that the transfer has been performed, and nobody can challenge the legitimacy of the transfer.
This feature of the Bitcoin system generated many very new, creative and innovative ideas where the concept equivalent to the Bitcoin can be used to perform secure and reliable transactions between users in an open community handling any type of digital asset ([Andreesen, 2014], [Sparkes, 2014], [UniCredit, 2016], [BitID, 2015], [PoE, 2015]). The examples of such applications and transactions range from commercial transitions, real estate transactions, energy trading, electronic voting, medical applications, and many others ([Kounelis, 2015], [Muftic, 2016]). The concept of blockchain as technology supporting validation of all such transactions is therefore called disruptive technology.
As the conclusion in this section, we may give a definition of blockchain:
Blockchain is an innovative concept, implemented as an infrastructure comprising multiple and distributed servers, mutually linked by special broadcasting and synchronization protocols, managing immutable objects with the purpose to enable and protect secure peer–to–peer transactions in a global and open environment.

1.4 Summary of Problems and Potential Solutions

In section 1.2 several problems of the Bitcoin system were mentioned and potential solutions for these problems were outlined. Recently, at the time of writing this Technical Report, several sources, mainly personal blogs and articles, appeared with very interesting opinions and statements regarding some other serious Bitcoin problems. Some of them are problems with the concept of the system, some problems of its design, and some problems of operations. In this section some of these problems are briefly summarized including suggestions for their potential solutions. The source of some problems was the article [Ein, 2018].
Problem 1: Complex Crypto Algorithms
Problem: Bitcoins is crypto currency and cryptographic algorithms used in the current version are very complex, based on the concept of proof–of–work, and require long time, special hardware and a lots of energy to perform
Potential Solution: Potential solution fro this problem is to use cryptographic algorithms that are simpler and therefore more efficient to execute and need less energy
Problems with Potential Solution: Lowering the complexity of crypto algorithms introduces vulnerability to hackers. Therefore, what is needed are strong algorithms and simple to perform for regular users and complex to break by hackers
Problem 2: Indirect Transactions, not Peer–to–Peer
Problem: Contrary to the concept claimed, in todays implementation Bitcoin payment transactions are not performed as direct, peer–to–peer transactions. They are performed indirectly, submitted to the Bitcoin network, and recipients receive them indirectly, by downloading validated transactions from the ledger
Potential Solution: Transactions should be performed directly, by transferring them directly between two users
Problems with Potential Solution: The problem with the potential solution is validation of transaction for proof of possession of Bitcoins by the sender and for prevention of double-spending. Therefore, what is needed is the protocol to validate peer–to–peer transactions.
Problem 3: Anonymity of Users not provided
Problem: Contrary to the concept claimed, in todays deployments of additional system components, mainly exchanges, users are not anonymous
Potential Solution: Blockchain–based Distributed Identity Management System with Role-based Authorizations
Problems with Potential Solution: The problem with potential solution is that it depends on trusted third parties with authorized roles. Therefore, what is needed is blockchain-based Identity Management System using hybrid (permissioned and unpermissioned) blockchain
Problem 4: Volatile Value, not suitable for Payments
Problem: Contrary to the concept claimed that Bitcoin is payment system, volatile value of the currency makes it inconvenient for payments
Potential Solution: Crypto currency with stable value
Problems with Potential Solution: The problem with the potential solution is that the value of Bitcoins is determined on the secondary market, during its trading (cash-in / cash-out). Therefore, what is needed is crypto currency that does not have volatile value
The remaining problems in this section are quoted from [Ein, 2018]:
Problem 5: Negative Environmental Impact
Problem: Mining algorithms and operational facilities (“mining farms”) consume too much electrical energy, based on the “proof-of-work” protocol
Potential Solution: Using mining algorithms that consume less energy, either as simpler / lighter crypto algorithms or using alternative crypto protocols to protect transactions integrity (“proof-of-stake”)
Problems with Potential Solution: The problem with the potential solution is that simpler / lighter algorithms open vulnerabilities to hackers while alternative crypto protocols are not backward compatible with the current system
Problem 6: Slow Performance (Delays) / Low Throughput
Problem: Due to blocking and the designed time for protection of transactions (10 minutes) Bitcoin system has very slow performance – transactions are validated in about an hour and transaction processing throughput is about 7 transactions per second
Potential Solution: Using transaction validation algorithms and protocols that do not need blocking of transactions, but transactions should be validated individually
Problems with Potential Solution: There are no serious problems with the proposed potential solution
Problem 7: Limited Number of Bitcoins
Problem: Due hardware and other types of failures, the number of available Bitcoins in the system is constantly reducing
Potential Solution: Potential solution could be to use smaller portions of Bitcoin (“Satoshi”) or introduce hard-fork by splitting the amount of available Bitcoins
Problems with Potential Solution: The problems with the first solution that it is not user-friendly and the problem with the second solution is backwards compatibility.
Problem 8: Real Value of Bitcoins
Problem: The value of Bitcoins is purely psychological and reflects only pure market speculations
Potential Solution: Potential solution could be to peg the value of Bitcoin to local fiat currencies in countries of deployments
Problems with Potential Solution: The problems with the potential solution is that such Bitcoins would be a new class of Bitcoins, not traded on exchanges and not volatile
At the end of this section, it is very interesting to quote two opinions about the future of Bitcoin and blockchain:
[Ein, 2018]: “It seems that Bitcoin will likely cease to have meaningful value, defeating the whole point and philosophy imagined by Satoshi Nakamoto, the alleged inventor of Bitcoin. Its current value appears to be purely psychological, and the hype seems to be driven by irrational exuberance, greed and speculation. Modern human history has seen many bubbles, including the dot-com bubble, the housing bubble and even the tulip bubble. However, when these bubbles exploded, many excellent dot-com companies survived, most houses regained their value and tulips still have meaning and carry value in our lives today. But what will happen when the Bitcoin bubble bursts? What utility or residual value will Bitcoin have to consumers and businesses? Most likely none. And this is the real problem with Bitcoin and crypto currencies.
Bitcoin will likely go down in history as a great technological invention that popularized blockchain yet failed due to its design limitations. Just like the industrial revolution was fueled by the combustion engine, Nakamoto’s most valuable contribution is the blockchain polymorphic engine that will further accelerate innovation in the post-information age and immensely affect our lives”.
This quote makes two very important and far–reaching predictions:
(1) Bitcoin, as the payment system will disappear (“. . . will go down in history”), and
(2) The most valuable contribution of the Bitcoin system is blockchain
This article was written in 2018. It is very interesting to notice that at the time of writing this Technical Report, (1) Bitcoin was still “alive” and (2) the concept and deployments of blockchain were in serious trouble.
Based on the principle of positive and creative approach, in the rest of this Technical Report, besides description of all technical details of the Bitcoin system, some potential solutions for its improvement will also be discussed.
However, contrary to the predicted status of Bitcoin, it seems that the predicted status of blockchain, in 2020 was still facing serious problems.
[Barber, 2019]: What's Blockchain Actually Good for, Anyway? For Now, Not Much
“Not long ago, blockchain technology was touted as a way to track tuna, bypass banks, and preserve property records. Reality has proved a much tougher challenge”.

[Lucanus, 2020]: Has Blockchain Failed Before It Even Really Began?

“Just as everyone was getting really excited about its potential, it appears blockchain is dead. For a technology that was supposed to transform and solve seemingly every problem in the world, the enthusiasm is fading pretty quickly”.
At the time of writing this Technical Report, there were many new blockchain – concepts, design and even several deployed and operational instances. Some of them are even very popular, but only among enthusiastic developers. The overall trends with real life deployments, and more and more comments about the capabilities and features of blockchains are appearing with negative connotation. Therefore, seems that even for blockchain some innovative concepts and approaches are needed. They are beyond the scope of this Technical Report and will be addressed in some of our follow-up reports.
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Inside a Bitcoin mine that earns $70K a day - YouTube

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