The Ultimate Guide to Rootstock Blockchain - Blockgeeks

Jihan Wu is an investor in Rootstock. Is Rootstock a competitor to Lightning and might be why he's opposed to SegWit? "..rewards the Bitcoin miners via merge-mining, thus allowing them to “actively participate in the Smart Contract revolution” in a way that is also fully compatible with Ethereum."

This is an automatic summary, original reduced by 38%.
It seems that after the meteoric rise of Ethereum, Bitcoin supporters can no longer just try to deny its invitational approach to blockchain and the smart money has decided that if you can't beat them, join them.
Buenos-Aires headquartered RSK Labs has revealed that it raised $1 million to further develop the first smart contracts platform codenamed Rootstock.
The funding round was led by a number of very influential bitcoin firms from around the world including: Bitmain, the Chinese bitcoin hardware mining giant, Coinsilium, the blockchain venture investment fund based in London and Barry Silbert's Digital Currency Group that now owns CoinDesk.
Rootstock is the first open-source smart contract platform with a 2-way peg to Bitcoin that also rewards the Bitcoin miners via merge-mining, thus allowing them to "Actively participate in the Smart Contract revolution" in a way that is also fully compatible with Ethereum.
Eddy Travia, CEO of Coinsilium, added: "I am very proud that Coinsilium supports the talented Rootstock team to develop a platform enabling smart contracts secured by the Bitcoin blockchain which I see as an essential element in the transition to a world of blockchain-based solutions for enterprises and public organizations."
Wu Jihan, CEO of Bitmain Technology, commented: "Rootstock is the most exciting opportunity for me among the startups in the Bitcoin ecosystem. The tidal wave of startups developing smart contract solutions based on RSK will bring countless miracles".
Summary Source | FAQ | Theory | Feedback | Top five keywords: Bitcoin#1 smart#2 RSK#3 Rootstock#4 contract#5
Post found in /Bitcoin and /BitcoinAll.
NOTICE: This thread is for discussing the submission topic. Please do not discuss the concept of the autotldr bot here.
submitted by autotldr to autotldr [link] [comments]

Jihan Wu is an investor in Rootstock. Is Rootstock a competitor to Lightning and might be why he's opposed to SegWit? "..rewards the Bitcoin miners via merge-mining, thus allowing them to actively participate in the Smart Contract revolution in a way that is also fully compatible with Ethereum."

Jihan Wu is an investor in Rootstock. Is Rootstock a competitor to Lightning and might be why he's opposed to SegWit? submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Q&A w/ Co-Founder of Rootstock (Bitcoin's Ethereum): "It’s a hybrid merged-mined/federated sidechain"

Q&A w/ Co-Founder of Rootstock (Bitcoin's Ethereum): submitted by eragmus to Bitcoin [link] [comments]

Q&A w/ Co-Founder of Rootstock (Bitcoin's Ethereum): "Its a hybrid merged-mined/federated sidechain"

Q&A w/ Co-Founder of Rootstock (Bitcoin's Ethereum): submitted by BitcoinAllBot to BitcoinAll [link] [comments]

A Sovereign Bitcoiner's Manifesto

Yesterday a post of mine got a good amount of attention in this, my favourite, sub. So I have decided to post it here in full...
More than mildly, it annoys us that we have the tools to be truly sovereign and yet we continue to submit our ourselves, and our bitcoin, to centralised authorities.
"Privacy is necessary for an open society in the electronic age"; yet KYC is demanded before we can trade.
"Not your keys, not your coins"; yet millions of bitcoin sit in the vaults of custodial exchanges and wallets.
For monetary liberty to be widespread it must be part of the social contract. We must come together to deploy decentralised systems that maintain Bitcoin's promise of sovereignty. These tools already exist and they are improving.

Awakening Our Inner Apex Predator

When Satoshi genetically engineered bitcoin, he spliced DNA from organisms that never survived (B-money, Hashcash, Bit gold). This gives bitcoin an incredible amount of survivability and fierceness. It makes it the apex predator of money.
Billions of dollars in cryptocurrency is traded, lent and borrowed on platforms that have self-custody and no KYC. Billions of dollars in cryptocurrency but not bitcoin. This decentralised financial system is called DeFi. Many Bitcoiners deny, ignore and attack DeFi because it is an invention, a mutation, that occurred on Ethereum. This reflexive defensiveness ignores a fundamental truth about Bitcoin: If any technology can provide value for Bitcoin, Bitcoin will simply adopt it. A nuanced view of DeFi recognises that it is composed both of valuable decentralisation but also of cancerous ponzis and evolutionary dead-ends. We will adopt DeFi where it improves Bitcoin DID (Defense-in-Depth) and cauterise the rest.


Bitcoin maintains its sovereignty through technological, cryptographic means. First and foremost, private keys provide the only means of control and ownership. Second, and most famously, Proof of Work defends the network against attack.
Attackers, however, are not limited to attacking the cryptography or the hashpower in order to limit our sovereignty. They route around and seek any weak links. "Trusted third parties are security holes". We increase the perimeter of defence by eliminating these trusted third parties.

Ethereum is Bitcoin’s Testnet

We will splice the DNA of DeFi into Bitcoin. We will increase Bitcoin's defense perimeter. The tools already exist. Ethereum is our testnet. Let it provide the radioactive pool where mutations are many. Let us observe it as it moves fast and breaks things. We will adopt it's best tools and learn to defend against its worst.
Rootstock, a Bitcoin sidechain, can be our CRISPR in this genetic adoption. We will splice the code from Ethereum dapps and improve upon them.

Cypherpunk Rouges

Cypherpunks write code, share code, review code and copy code. Sovereign individuals use this code. Like the X-men's Rouge, Bitcoiners will absorb the superpowers of others. I have been working on a DeFi dapp for decentralised bitcoin trading and lending. Hopefully you will join me, or better yet, compete with me.
"Those who would give up Liberty, to purchase a little temporary convenience, will have neither Liberty nor convenience." That will be our code.
submitted by OroroThePickpocket to Bitcoin [link] [comments]

AMA Session with Sergio Lerner

Widely recognized as a leading security and cryptocurrency researcher, and a serial entrepreneur, Sergio Demian Lerner has co-founded several technology companies: RSK Labs, Coinspect, Coinfabrik, ASICBoost, and ATI-Medical. In 2011 he joined the Bitcoin community and collaborated to strengthen the security of the Bitcoin Core by responsible disclosing 9 vulnerabilities. In early 2013, he created QixCoin, the first Turing-complete cryptocurrency. In 2015, he performed one of the first security and design audits of Ethereum and collaborated in the design of the platform. Also in 2015, he designed RSK, the first Bitcoin sidechain. Since 2011 he has proposed more than 70 technical improvements to Bitcoin, Ethereum and RSK, for improved blockchain privacy, interoperability, security, decentralization, scalability, fairness, and latency. For the purposes of this AMA, we would like to focus on RIF and RSK technologies, the relationship between RSK/RIF and platforms like Liquid and Ethereum, RSK merge-mining, the RSK two-way-peg security, current projects in the works, and Sergio’s contributions to Bitcoin.
The AMA will be from Thursday, June 4, 2020 at 10am EST to 12pm EST. We are posting this a few hours ahead of time to allow for questions to get started.
Join us on the RSK Official subreddit here: RSK Official Twitter:
RIF Official Twitter:
Sergio Lerner Twitter:
Sergio Lerner Blog:
RSK Announcement Telegram channel:
RSK Official Community Telegram channel:
RIF Official Community Telegram channel:
submitted by SergioDemianLerner to CryptoCurrency [link] [comments]

"Quite honestly, I don't think we should be doing smart contracts on Bitcoin. Bitcoin doesn't do smart contracts, and it doesn't do smart contracts because it does security." - Andreas Antonopoulos

Taken from LTB #414 Live Q&A
Stephanie Murphy: “What's everybody's view on Rootstock (RSK)?”
Andreas M. Antonopoulos: I don't think Rootstock is putting smart contracts on Bitcoin. Rootstock is allowing you to use Bitcoin to pay for smart contracts on the Rootstock Drivechain, which you could theoretically do by shifting money into Ethereum. In fact, recently I saw someone who had built a gateway that allowed you to make a Lightning payment that terminated in an Ethereum contract. So there's many ways to bridge different blockchains together. Quite honestly, I don't think we should be doing smart contracts on Bitcoin. Bitcoin doesn't do smart contracts, and it doesn't do smart contracts because it does security. That's not a trade off I think is worth doing. It's much better to leave that to a chain that has a much more experimental culture and can take bigger risks.
As to whether we can do smart contracts, that's not a binary question; it's a question of value. So can we do smart contracts that can keep $1,000,000 secure? Yes. $10,000,000? Maybe. $100,000,000? No, the DAO proved that. How about now? DAI is doing more, so maybe yes. So it's basically a moving front. As the the maturity of the smart contract ecosystem expands, we can do bigger and bigger stakes (no pun intended) within the smart contract ecosystem. Every now and then there's gonna be a fairly catastrophic failure that's gonna cause a regression in the amounts of money that's put in them. But essentially it's growing. We're proving this every day, and it's the same thing with Bitcoin. The way you measure security in a smart contract or you measure security in a cryptocurrency like Bitcoin is how secure is Bitcoin? X billion dollars. That's the stake that is sitting on it right now, unhacked so far.
BONUS: Bitcoin's security model as block reward approaches 0.
Stephanie Murphy: “Do you think Bitcoin will be able to shift from block rewards to transaction fees to maintain security as the block reward approaches zero?”
Andreas M. Antonopoulos: “This is one of the fundamental misunderstandings and dynamics of mining for most people, which is the idea that something suddenly happens sometime at an undescribed future, either at the next halving or in 2141. The truth is on a daily basis, every single miner in the industry looks at six or seven different factors: the efficiency of their mining equipment, the price of electricity in their local fiat, the cost of their operation system, the current price of Bitcoin in fiat, the reward that's available as a block subsidy, the average amount of fees they can get, and the relative proportion of hashing power. They decide based on all of these factors. Do I leave this specific machine on at its current efficiency, or do I turn it off, or do I point it to another coin? That happens every single day. Every single day that decision continues, it’s rebalancing all of these dynamic factors. So the shift between block subsidy and fees happened every single day since January 3rd 2009 and it continues to happen today.
Sometimes, the capacity of the blockchain, the number of transactions that are in there, the value of the fees mean that it really attracts miners because there's a lot of fees to take. Other times, the fees decrease, the number of transactions decreases, so they're now more reliant on block subsidy and then it swings back and forth and back and forth. It's gonna oscillate in that way all the way to 2141.
submitted by lobt to Bitcoin [link] [comments]

Re-Launching The Borderless, Unkillable Crypto-Fiat Gateway, DAIHard. Enter or Exit Crypto via Any Fiat and Any Payment Method, Anywhere in the World, Without KYC. All you need is a little Dai.

Some of you might recall recall our initial facepalm failed launch about 3 months ago (post-mortem here). Well, we're back--this time with an audit and some new features. This version of DAIHard should should die a little harder this time ;)

The Audit

After shopping around a bit in the auditor space, we decided to go with Adam Dossa--the very same Adam Dossa that actually found our launch vulnerability and responsibly disclosed it to us! You can see his report here. By the way, Adam has been a gem: friendly, professional, timely, and flexible. Definitely keep him in mind if you need an audit!

(Re)Introducing DAIHard

Following is an updated version of our original launch post. If you've already read that, you might want to skip to the heading What's New in v0.9.2. Or you can go straight to the app or go to our info site for more info!
Here is a legitimate concern most of us are familiar with:
To enter or exit the crypto economy, we rely on centralized exchanges such as Coinbase, which track their users, impose limits, and are tightly coupled to their jurisdiction and its banking system. And for all we know, any day now regulations could start tightening these controls further (*we've actually seen some of this play out in the two months since our first launch post). In light of this, can we say in any meaningful sense that crypto is anonymous, limtiless, borderless, immune to regulation, and (most importantly) unstoppable?
To really address this concern, we need a completely decentralized gateway between fiat and crypto: something that extends the benefits of crypto to the very act of moving between the old and new economies. But the design of such a platform is far from obvious.
(Localethereum comes close, but as discussed under Unkillable, it doesn't quite cut it. And Bisq is decentralized, but has significant UX hurdles.)
We believe we've found a solution. We are proud to present:

DAIHard v0.9.2 - Almost Definitely Not Broken This Time

If you want to jump right in, we recommend first watching our latest usage demo (7 min), then diving in and giving it a shot with a small amount of Dai. (Try it on Kovan first if mainnet is too scary!)
DAIHard extends many of the promises of crypto (borderless, anonymous, limitless, unstoppable) into the exchange mechanism itself, allowing anyone, anywhere to bypass centralized exchanges and the control they impose.
More concretely, DAIHard is a platform, run on smart contracts, for forming one-off crypto/fiat exchanges with other users, in which:
Again, our latest usage demo (7 min) shows this process in action.

Two drawbacks

You Need either xDai, or both Dai and Ether, to Use The Tool (At Least For Now)

If you want to buy Dai on DAIHard, you must already have Dai--1/3 of the amount you want to purchase--to put up as a burnable deposit. For example, if you only have 10 Dai now, you can only commit to buying 30 Dai, and must complete that trade before using the newly bought Dai to open up a bigger offer (for up to 120 Dai that time).
Most tragically of course, this means that if you don't already have some crypto, you can't use this tool to get crypto--this is why we avoid calling DAIHard an onramp specifically. This comes from the fact that both parties must have "skin in the game" for the game theory to work, and a smart contract can only threaten to burn crypto.
We have some ideas on how to address this drawback in the not-too-distant future, which we'll write about soon. For now it's time to launch this thing and get some users!

Dangerous and Scary To Use

In rare cases, a user may have to burn Dai and face a loss on the entire trade amount. The necessity of this ever-present risk is explained in detail in DAIHard Game Theory.
However, a cautious, rational user can gather information (possibly via our [subreddit](daihard)!) about how people have used the tool, successfully and unsuccessfully. They can then create a buy or sell offer with wisely chosen settings based on what has worked for others. Other cautious, rational users can find this offer and commit to the trade if they dare. We expect the vast majority of committed trades should involve rational, cautious users, and should therefore resolve happily.
Still, inevitably there will be sloppy trades that result in burns. As the tool is used, we'll be keeping a close eye on the frequency of burns and keeping you guys updated (perhaps via a "System Status" utility similar to the one found on MakerDao's explorer). In the end, though, we expect the risk in using DAIHard to be comparable to the risk of using any exchange or DNM: ever-present but low enough for the platform to be useful as whole.
So, while DAIHard will never shut down and can't perform an exit scam, the bad news is it's not risk-free. Users will have to approach DAIhard with the same level of caution they would with any new exchange (albeit for different reasons and with a different approach).
So what's the good news?

The Good News

While these drawbacks are significant, they enable some remarkable features that no other crypto/fiat exchange mechanism can boast.


(Correction: Bisq seems to have a decentralized arbitration system)
We are aware of no other crypto/fiat exchange platform that is truly unkillable. Bisq and localethereum comes close, but both localethereum relies on centralized processes of arbitration. This means their fraud-and-scam-prevention system can be sued, jailed, or otherwise harrassed--and if that part stops working, it doesn't matter how decentralized the rest of the system was.
DAIHard, in contrast, gives the users the power to police and punish each other, via the aforementioned credible threat of burn. This is simple game theory, and the rules of this game are etched permanently into the DAIHard Factory and Trade contract code: impervious to litigation, regulation, and political pressure.
This Factory contract has no owner and no suicide or pause code. It cannot be stopped by us or anyone else.
Like Toastycoin, this thing was immortal the moment it was deployed (even more immortal than RadarRelay, for example, which does rely on an ownership role). Both DAIHard and Toastycoin (and probably whatever we build next) will last for as long as a single Ethereum node continues mining, and it will remain easy to use as long as someone can find the HTML/JS front-end and a web3 wallet.
(The HTML/JS front-end (built in Elm, by the way, with the lovely elm-ethereum!) is currently hosted on Github pages, which is centralized--but even if Github takes down the page and deletes the code, it's a minor step to get the page hosted on IPFS, something that is on our near-term roadmap in any case)

No KYC, No Limits

It's smart contracts all the way down, so DAIHard never asks any nosy questions--if you have Metamask or some other web3 wallet installed and set up, with some ETH and Dai (or just xDai), you can immediately open or commit to a trade. You don't even need a username!
(In fact, we're so inclusive, even machines are allowed--no CAPTCHA here!)
You're limited only by the collateral you put up, so if you have 10,000 Dai you could open up a buy offer for 30,000 Dai (or a sell offer for 10,000 Dai) right now.
We do reccommend trying the tool out first with a small amount of Dai... But we're not your mom! Do what you want!


It simply doesn't matter where you are, because DAIHard doesn't need to interface with any particular jurisdiction or payment system to work. DIAHard works by incentivizing people (or robots?) to navigate the particular real-world hurdles of bank transfers, cash drops, or other fiat transfer methods. These incentives work whether you're in America, Zimbabwe, or the Atlantic; they work whether the fiat is USD, EUR, ZAR, seashells, or Rai Stones; and they work whether your counterparty is a human, an organization, a script, or a particularly intelligent dog with Internet access.

Any Fiat Type, and Highly Customizeable

Here are some examples of the types of trades you might create or find on DAIHard.
As the DAIHard community grows, users will doubtless find much more creative ways to use the system, and we will discover together which types of trades are reliable and which are more risky. Because users can set their own prices and phase timeout settings, we expect the risky trades to charge a premium or have longer time windows, while the reliable ones rapidly multiply at close to a 1:1 price ratio, with quick turnaround times.

Extensible (with profit) by Third Parties

Not satisfied with our interface? Do you have some nifty idea for how to display and organize user reputation? Or maybe some idea for how trades could be chained togeher? Maybe you'd like to design a notification system for DAIHard? Maybe you just want a different color scheme!
Well, you won't need our permission to do any of this. Any tool that watches the same Factory contract will share the pool of trades, regardless of which tool actually creates the trade. This means we don't even have to fight over network effects!
And if you look closely at our fee structure, you might notice that only half of the 1% DAIHard fee is "hardcoded" into the Factory contract. The other half is set and charged by our interface. What does this mean for you? If you go out and make a better interface, you can essentially replace half of our 1% fee with your own fee--it's up to you whether it's smaller or larger than the replaced 0.5%.
The reason for this is to explicitly welcome other developers to extend what we've built. For as long as our team is the only one improving the platform, a threat to us is a threat to future upgrades. But if others begin extending the DAIHard platform too, then DAIHard will not only be unstoppable as it is today, but also grow unstoppably.

(For Real This Time) This Is a Big Fucking Deal

DAIHard is a turning point in crypto and a breakthrough in decentralized markets, and is an irreversible augmentation of the Ethereum platform.
What we've built is a gateway to crypto completely devoid of centralized components--rendering entry and exit to crypto unkillable, flexible, borderless, and private. Centralized exchanges, and the control they impose, can now be bypassed by anyone with Dai and a web3 wallet.

What's New in v0.9.2

There have been many changes made since our first failed launch, but there are two rather important ones: xDai support and reputation tools.

xDai support

DAIHard is now operational on xDai, a sidechain whose native token (xDai) is pegged to the Dai (and therefore $1). Add the xDai network to your Metamask (or just install Nifty Wallet), then switch to the xDai network in your wallet, to try it out. xDai has some pretty incredible benefits, compared to vanilla Ethereum:

Reputation tools

We now have a few reputation tools. First, on any open trade, there is a widget showing the number of releases, aborts, and burns the given address has been involved in as that role (buyer or seller). Clicking on this expands the widget to show more detailed information, and also provides a link to a page that lists each trade this user has been or is involved in.

What's next?

We have tons of ideas on how to improve the product--too many, in fact, to commit to any before we get a good chunk of user feedback. Here are some of our favorite ideas:

Near-Term, Smaller Features

  1. Lots of usability improvements.
  2. A "System Status" utility similar to the one found on MakerDao's explorer).
  3. Marketplace / My Trades rework.
  4. A "QuickTrade" page, offering Trade Templates as an alternative to the current Create Offer page.

Big Exciting Features

  1. Bootstrapping people with no DAI via other mechanisms and community outreach.
  2. Partial commits to trades. eg. Place a 10,000 DAI trade and allow it to be picked up in blocks larger than 500 DAI at a time.
  3. More chains, get this thing working on Bitcoin via Rootstock, on Ethereum Classic and Binance Chain.

Stay Informed!

A lot of the above features will be prioritized more clearly as we get user feedback, and we will be posting fairly frequent updates and articles on our info site. If you don't want to miss anything, note the subscribe widget and sign up!
submitted by coinop-logan to ethereum [link] [comments]

Rootstock Raises $1 Million to Bring Smart Contracts to Bitcoin Blockchain

Rootstock Raises $1 Million to Bring Smart Contracts to Bitcoin Blockchain submitted by Chakra_Scientist to Bitcoin [link] [comments]

[Official Release] RootStock White Paper: Bitcoin-powered Smart Contracts - By Sergio Lerner

submitted by eragmus to Bitcoin [link] [comments]

RSK Mines Its Genesis Block - Bitcoin-based smart contract platform and sidechain on the mainnet.

submitted by CryptoFS01 to Bitcoin [link] [comments]

Rootstock is not competition for Ethereum – a mega thread?

Just thought we could dump it all here to have a common reference for the people that seem to show up every other week or so.
My take:
Ethereum (EF and ConsenSys) and Rootstock members are often quite friendly with one another. They see plenty of room to sector to promote blockchain adoption (raising all ships).
That said, Rootstock is likely going to focus on a much smaller sector. Think of it as one of the “enterprise” implementations of a blockchain. This is also why Rootstock code has essentially been proprietary. They could be easily forked if open source. Rootstock has a lot of challenges even at that more limited scope.
Let’s assume for a second that #1 is deemed acceptable to some developers and users.
Let’s assume for a second that #2 is somehow accepted by the bitcoin community.
In the end, Rootstock might find success in an enterprise somewhere, and that’s great. But Rootstock is not a threat to Ethereum’s public chain, and even for Ethereum enterprise, it has some challenges ahead. Nevertheless, they are smart developers. We should wish them success. If they find success in a niche, they are promoting blockchain adoption, and who knows, maybe they will interoperate with Ethereum for some future application. There is plenty of room for everyone.
Last, and this is pure speculation. I think Rootstock will need some huge luck to not be dead on arrival. The Rootstock devs are clever, but they have overestimated the toxic environment of Bitcoin. So much of Bitcoin would never want them. They would simply be viewed as more Ethereum in sheeps clothing. My guess is these clever Rootstock devs use their clever ideas to build on Ethereum within the next year or two. Bitcoin will not embrace it. It's a centralized effort, which is so anti-bitcoin.
submitted by -bawb405- to ethtrader [link] [comments]

Is Rootstock a viable competitor to Ethereum?

When Bitcoin activates Segwit and raises their MAX_BLOCKSIZE parameter, could Ethereum lose a lot of its users to Rootstock? Rootstock promises to only cost 1/10th of Ethereum's gas price, and smart contracts are backwards compatible from Ethereum to Rootstock.
How exactly do they expect to reach 20k transactions per second in a trustless manner? And is merged mining a healthy way to secure their blockchain?
submitted by RavenDothKnow to ethereum [link] [comments]

Smart Contracts are coming to Bitcoin

Smart Contracts are coming to Bitcoin submitted by UberSatoshi to Bitcoin [link] [comments]

Ethereum, the Next Internet

Ethereum, the Next Internet submitted by cryptoDM to Futurology [link] [comments]

Looks like Rootstock is going the more private route than the Ethereum's open and public development - Bulls smile

Just read that Counsilium (a modest size crypto investment group) is investing $100k in RSK Labs Ltd, the company working on Rootstock. Obviously, a $100k doesn't go very far, but more importantly it seems that RSK Labs Ltd will be THE gateway to Rootstock. There has been some speculation that Rootstock will stick to a more proprietary model (currently, there's no evidence of an open source model).
This is important here for a number of reasons. One, it's pretty bullish for Ethereum. While it's often controversial, there's good evidence that proprietary and public models can reach different sectors (think iPhone vs Android and RSK Ltd vs Ethcore). This is also very smart for RSK labs. As THE gateway to these smart contracts, they are poising themselves well as a for-profit company.
It's also bullish here because it's noted that Rootstock is not expected until "mid-2016". Many here speculated that they don't see Rootstock being feasible within the next year, however, there has been other hints that it could come as early as February. Well, that early date is now clearly unlikely. Late Q2 would even be very optimistic. Looks like Ethereum will be well into Homestead, maybe Metropolis, before we see any feasible Rootstock release.
Ethereum developers have been very supportive of Rootstock's development as well. The technology that Rootstock uses could work well with Ethereum. There may be some very serious mutual beneficial connections that are not even close to imagined by us traders.
submitted by nbr1bonehead to ethtrader [link] [comments]

My obsession with crypto started late 2016 and here's how I ended up viewing Bitcoin. Am I misguided or do I have a good understanding?

Bitcoin being an amazing technology but mostly misunderstood spawned a unique group of followers. These early adopters have spent a considerable amount of time defending Bitcoin from crypto nay-sayers and a plethora of other Bitcoin clones. Their efforts were justified and rewarded given BTC is currently trading at ~$2700.
However, this group of early adopters/staunch supporters having been tempered over time are being viewed as narrow-minded gaining the title Bitcoin Maximalists. Mainly, this is in response to the growing number of crypto-coins competing in the space not so much the defending of Bitcoin to crypto nay-sayers given that battle has already been won and crypto is being widely adopted.
The previous crypto climate had numerous bitcoin clones which didn't really add value and only obfuscated the benefits of crypto. The current climate of crypto is different from the previous with new, viable and creative crypto projects happening frequently. Given the ingrained sentiment of Bitcoin Maximalists these new crypto ventures are met with distrust.
In addition, the fundamentals of Bitcoin are being challenged by these new projects where new lines of thinking and code might be better. Enter Ethereum, of all the "Alt coins" (a widely used term to bucket every crypto other-than Bitcoin) Ethereum stands tall with an innovation they brand as "smart-contracts". These smart-contracts are really just lines of code written on the Ethereum block chain which differs from the typically block content of amounts and addresses. These lines of code create a platform for many unique use-cases which has pushed the perceived value of Ethereum up.
Right now the state of Bitcoin is high fees and long confirmation times ~10min per block and transaction backlogs. In the current market of crypto these limitations are scrutinized given high visibility of Bitcoin as the leading crypto currency and reasonable competition in the crypto space.
Bitcoin's code base has gone through numerous changes over the years but has been stunted lately with contention between a specific feature called Segwit. This feature fixes a malleability issue but more importantly it creates a secure platform for a few features including things like lightning network, rootstock (RSK) and atomic swaps. Here is where confusion on value and speculation run rampant and becomes hard for new comers to truly understand but I'll explain how I see the current state and I'll group it by party.
  1. Jihan Wu: Bitmain creator. Jihan Wu is the founder of the largest Bitcoin mining rigs producer with proprietary processors. It is rumored (some say proven) that a specific ASIC boost processor manufactured by Bitmain exploits the "header" of a Bitcoin block to more quickly mine Bitcoin giving Bitmain a competitive advantage against other miners. Jihan Wu/Bitmain control a significant portion of the Bitcoin Hashpower which in some respects centralizes mining and undermines the original intent of Bitcoin as a decentralized currency. With Segwit this exploit would be removed voiding this new ASIC boost processor. Given this any feature added to Bitcoin will become much more difficult to implement if Jihan Wu doesn't agree and in this case he certainly doesn't.
  2. Bitcoin Miners in general. Given the value of Bitcoin and the high transaction fees miners aren't incentivized to incorporate Segwit. The argument can be as simple as "If it ain't broke." and largely the opinion is it aint broke because their Bitcoin and transactions fees are more profitable than they've ever been.
  3. Bitcoin Users/Traders in general. With the limitation on transaction count, speed and cost Bitcoin users feel Bitcoin is becoming less and less relevant in the crypto space and really want updates like Segwit which would give practical application and would keep Bitcoin competitive in the space. Adding Rootstock for smart-contracts and lightening network for instant transactions. It would be make Bitcoin feature parity with Ethereum.
At the end of the day miner's have the say and it seems Segwit hasn't been adopted. There are other arguments threading through this like block size increase which for the most part isn't an argument since everyone basically agrees Bitcoin needs it but they think Segwit isn't the way to go about it given Segwit also opens up block size to a certain extent. Also... Bitcoin Unlimited which was supposedly funded by Jihan Wu and Roger Ver (google if you have time) are competing with Bitcoin Core to write to the codebase/protocol of Bitcoin. This could be construed as a conspiracy to control Bitcoin or at least maintain the competitive advantage of ASIC boost miners as long as possible. Definitely google this, its absolutely fascinating and could very well be it's own movie.
While all this contention was happening with Bitcoin, Litecoin (a Bitcoin clone) decided to adopt Segwit. This helped light(lite) a fire under the Bitcoin community which in turn spawned the desire for a new movement called UASF (user activated soft fork). This; as the name implies, is trying to directly tie to the will of the users which it should be noted aren't necessarily miners. UASF is an attempt to force Segwit on Bitcoin. On August 1st of this year all those nodes signalling UASF will adopt Segwit. This is going to have a major if not the largest impact on Bitcoin. Very bad things might happen including wipeouts, forks, exchanges freezing Bitcoin transactions, two different bitcoin and worst of all Marketshare loss.
Speculation: 1. Ethereum is poised to take the top seat and many speculate this will happen due to the UASF push if marketshare is lost. 2. If Segwit isn't adopted the "Flippening" will occur which includes most all Bitcoin holders and hodlers(google it) will finally move to an Alt coin. 3. If Segwit is adopted Bitcoin will regain any lost marketshare.
Concerns from this crypto noob: 1. The current PoW hashing needs for Bitcoin are egregious and don't scale. It seems a flaw since it spawned a somewhat centralized mining base which is impeding the growth of Bitcoin. 2. Bitcoin Maximalists in their arrogance might have missed an opportunity to move to Litecoin. If Bitcoin doesn't adopt Segwit it might have a negative affect on all Bitcoin clones even those they had the feature many Bitcoin users so desperately need Segwit on an "Alt-coin". 3. Iota seems like a disruption for block chains. If Iota produces as expected block chains will be a thing of the past unless its a PoS which isnt just trying to brute for solve hashes but is running programs and doing measurable work which everyone benefits from not just the miner.
Edit: There has been some feedback given that might also refine the above. Arguments were made: 1. Block times don't affect transaction speed 2. Ethereum was not the first crypto to implement Smart Contracts 3. IOTA is centralized and has major issues 4. ASIC boost is not a rumor but confirmed true 5. Centralized Mining will always be a problem with any PoW
Of the above arguments made I'm fairly certain IOTA isn't as dire as it's being made out to be in this thread. They currently have a root node which guards against a 33% attack but when the transaction volume increases to a high enough level this node goes away. The entire argument around centralization is really this root node.
Maybe others in the thread can some color to the other arguments
submitted by 3dworldrunner to CryptoCurrency [link] [comments]

Article Analysis: 10 Good Reasons To Buy Bitcoin Now

Article Analysis: 10 Good Reasons To Buy Bitcoin Now submitted by adamduren to ethtrader [link] [comments]

What is Rootstock(RSK)? The bitcoin sidechain no one is talking about.

What is Rootstock(RSK)? The bitcoin sidechain no one is talking about. What is RSK?
Non-Technical Explanation of Sidechain
How will it improve the price of bitcoin
What is RSK?
How this new user-case for Bitcoin is not having a humongous buzz around it is beyond me, the hype is quite low if there is any.
“The Rootstock platform provides Turing-complete smart contracts as proposed by Nick Szabo in 1993. At the same time, RSK’s VM is backward compatible with Ethereum VM, hence Rootstock gives the opportunity to developers working on Ethereum to benefit from the robustness of the Bitcoin Blockchain. “ — Whitepaper
Rootstock is a sidechain pegged 1–1 to bitcoin, a two-way peg, meaning what is valid on the BTC network is valid on the RSK network and vis-versa. Using Bitcoin as the main chain for security, rootstock won’t be running an ICO or pre-mint coins/pre-mine them, instead as a pegged side chain to bitcoin; every RSK is represented on the Bitcoin main.
Rootstock is turing complete, and this means that smart contracts will run correctly on it, it is projected to reach a tps of 300 transactions per second.
It is backward compatible with Ethereum, meaning that Ethereum smart contracts can easily migrate to RSK. With Oraclize service on the RSK network will enable this feature, it is a blockchain agnostic feature that will make different blockchain networks compatible with one another.
RSK will merge-mine with BTC, as of now, the RSK blockchain secured with 10% of BTC hashrate, which will provide security for the network, RSK mainnet hasn’t launched yet, but the testnet has been running, expected lunch of mainnet if in June.
Non-Technical Explanation of Sidechain.
RSK is a sidechain, means it depends on another chain for some features such as security, it has its own on chain consensus and relies on merge mining meaning miners mine both mainchain and sidechain at the same time. The mainchain works as usual and doesn’t need to fork or change, then the RSK runs separately but relies on the transactions on the BTC.
In reality, there is no transfer between the chains; the funds are locked in one chain (the mainchain) for it to unlock in the other chain and vis-a-vis. These are automatically done and remains genuinely decentralized.
How will this improve the price of Bitcoin?
RSK as a platform will be the launching board for smart contracts if RSK becomes successfully and lots of projects migrate to it, this will increase the demand for Bitcoin for this reason alone the BTC prices will go up because of the increased usage.
RSK will increase the profits of Bitcoin miners; miners will make extra income through merge mining with RSK, this will help the profitability of mining bitcoin.
If the RSK team can achieve 300 tps as claimed after mainnet lunch and its backward compatibility using the oraclize service is valid, then lots of projects will migrate to RSK from other will be more secure and scalable than the rest, not even Ethereum is as scalable, and the backward compatibility is a game changer.
So we have all these features in a project that will be dependent on transactions on Bitcoin, this will influence the Bitcoin network positive way both in price, use, and importance. Though this will take time to be perfect with time it will grow to be huge; unfortunately, there won’t be ICO sales (no official announcement- but I don’t see the likelihood if it will is paired to BTC and no pre-mining)
This project is enormous and will be a major talking point once its out entirely hopefully next month.
Culled from :
submitted by Ekene3tconcept to CryptoCurrency [link] [comments]

Don't forget to sell your ETH now!

Guys, even though Bitcoin maximalists say that smart contracts are crap, now they are wetting their pants because they are getting a federated (= trusted) merge mined side chain with a copy paste of the Ethereum virtual machine.
This is the pinnacle of Bitcoin development.
Obviously this is the future, so sell all of your ETH now. /s
submitted by drawingthesun to ethtrader [link] [comments]

The intelligent investors guide to cryptocurrency: Part 3a - The value proposition

*Introductions: I'm joskye. A cryptocurrency investor and SDC holder. *
Hi again. This is the third part in our ongoing series on how to trade better and determine intelligent investments in cryptocurrency for the future.
In part 3 I will now discuss Cryptocurrency valuations, price metrics and identifying coins of value, worth holding.
What makes a coin worth holding: The value proposition
What makes anything worth holding? How much of themselves is a person willing to put into it - that's how much.
Cryptocurrency is largely driven by faith. It is a speculative enterprise i.e. people mostly put money into cryptocurrencies believing they will go up in value in the future; their plan to sell at a higher price when it does.
Currently most cryptocurrencies serve no function than being currencies in themselves. Unfortunately these currencies are largely not recognised by governments, most institutional investors or companies are legitimate stores of value or legitimate currencies of transaction. As such legislation and rules around the world regarding them vary considerably and are often absent.
There are very few cryptocurrencies that have legitimised backing, are insured or supported by enterprises that are insured for their loss and essentially there is little to protect you if you lose money through them.
So why do people bother putting money into cryptocurrencies it in the first place?
If the present and future value of a cryptocurrency is driven purely by speculation then you are essentially gambling by putting your money to buy that coin and joining the pool of other gamblers who are doing so. You are essentially joining a ponzi scheme and waiting game hoping you've gotten in early enough and convinced enough people to buy more of the asset you hold at slightly higher prices until a price is reached that you can cash out at (or until that thing becomes so big that everyone starts using it as their store of value).
This type of dynamic essentially underpins the mentality of most investments and trades i.e. buy low and sell high. I'd like to add buy early for investors since buying during a low in an already established asset may be setting yourself up for being forced to sell at a lower low later (especially if you don't understand the fundamentals of that asset).
If however the present or future value of a cryptocurrency is driven by some service other than speculation which can attract and drive fiat currency into it's ecosystem then it is potentially valuable.
I.e. will people actually use their USD/Yuan/Euro/GBP/Yen/INR etc to actually purchase the coin in question to do something useful with it (other than gamble on it's future price).
There are some cryptocurrencies which satisfy this criteria:
It is not a currency, it is a remittance system and store of value. It has a reputation increasingly to being seen as a digital version of gold.
Bitcoin has the cultural and historical advantage of being the first cryptocurrency. It is also still the largest cryptocurrency by a long way with the largest marketcap i.e. price per bitcoin [$952 as of writing] x the number of bitcoin in circulation [16,074,687] which is $15.3 billion. Compare to it's next biggest competitor Ethereum which has a marketcap of $700 million (i.e. only 4.57% of Bitcoin's).
Bitcoin's value proposition is that it is a store of value. It may not be able to sustain this without significant upgrades to it's underlying software.
Monero (XMR)
Bitcoin does not have anonymity inherently built into it's software. Therefore if you buy and sell Bitcoin especially on cryptocurrency exchanges (where user registration is required), it is possible to trace whom Bitcoin is being transferred from and to.
For this reason I see Monero as Bitcoin + anonymity. I.e. it's value proposition is as store of hidden wealth. I also believe it does not have the issues that bitcoin does namely, same level of mainstream recognition, spotlight of regulatory awareness and developers do seem to be more focused on achieving better scalability and transaction times (it already does 10-20 minute verification time vs bitcoins 1 hour) which gives it better potential as a currency presently compared to Bitcoin.
-This sort of market cap dwarfs gold. However this type of up-scaled usability will not occur until the transaction verification times are much faster (nanoseconds) and the protocol is enhanced to cope with much larger transactions volumes and frequency at that speed; We are a long way off that.
I do believe fiat stored in Bitcoin will gradually transfer into Monero boosting it's value. I am not sure Monero though can presently bring fresh fiat currency (USD, Yuan etc) into it's ecosystem beyond outsider speculation in future price.
It is not unique in it's function or potential value proposition. My warning about holding Monerofor the long term is that it has competition for it's function not just from Bitcoin itself but from other anonymous coins such as Zcash, DASH (which provides instantaneous settlement) and SDC. Perhaps more importantly, Ethereum (ETH) is now planning to implement optional anonymity (via zSNARKs) in it's transaction network; if it does when combined with Ethereum's own functionality and well defined development roadmap (that will likely several second verification times in late 2017) would render XMR potentially redundant.
Ethereum (ETH)
The value proposition for Ethereum is that it allows for complex, trustless settlement systems to be built on it. This is a huge deal because the scope of applications is wide and although the technology needs to mature (to support greater transaction volume, frequency and more secure functionality) the sheer amount of fiat such a platform could attract through conversion of traditional centralised settlement and contract services to more secure decentralised platforms is very huge.
Shadowcash (SDC)
The value proposition is a double escrow, fully anonymous, decentralised privacy platform which incorporates private chat, private marketplace and secure, trustless private settlement system into one platform that is fully integrated into it's own blockchain.
Shadowcash already has multiple features that make it an excellent store of value: Low coin supply, potential for great demand, near instantaneous transaction verification times, ability to earn interest for simply holding it.
Shadowcash is incredibly easy to use and is heavily focused on usability. This is absolutely essential to it's end users: customers who seek convenient easy and speedy secure anonymous transaction. This will be a dream come true for traditional users of darknet markets.
To explain why lets elaborate on traditional darknet markets where in order to transact anonymously you have to:
1. Download the TOR browser. 2. Learn how to use it. 3. Buy XMR or Bitcoin. 4. Learn how to transact with these coins *safely* (yes this is still an issue with XMR in spite of it's built in privacy). 5. Learn how to and where to find reliable secure darknet markets. 6. Create accounts on these markets to access them *and* 7. Have faith that the websites and the highly centralised (and thus much more vulnerable) servers hosting those markets you use will not get shut down, not disappear with your money and not betray your transaction details and potentially identities to the authorities should they be infiltrated by them. 
Whereas with Shadowcash's market place this process will become:
1. Download the Shadowcash Umbra client ( 2. Buy some SDC on an exchange and transfer it to your Umbra client. 3. Browse the Shadowcash marketplace and transact securely, safely and anonymously. 
In summary I think Shadowcash can be a very useful application as a privacy platform for private communications and transactions.
Those two points constitute it's value proposition. By nature of the way it works it has an easily identifiable P/E ratio based on the amount used to create the fund ($10.5 million) against the current value of that fund based on it's
Summary lessons
The first rule in investing or trading in a given cryptocoin is deciding if it has a value proposition:
1. *Can it draw fiat currency (USD, Euro, Yuan etc) in such a way as to give it a valuation that is fully independent of pure speculation?* 2. *Is it unique?* 3. *Is it rare?* A limited supply with a low or negative inflation rate will lead to increasing price as demand goes up. 4. Are there significant risks associated with the value proposition? 
In the next article I will cover lesson 3b: Price metrics and valuations. It will be much shorter I promise but equally informative and we will cover topics such as price determination, impact of speculation, price manipulation, whales and their impact and the impact of bitcoin on the entire cryptocurrency ecosystem.
Finally just to really hammer it home; why am I posting this on the Shadowcash subreddit?
It is because Shadowcash is the best cryptocurrency investment of 2016 and I believe it will be again by March 2017.
1. Crypto-Currency Market Capitalizations,, Last Checked 30/01/2017 2. What is the value of all the Gold in the world?, Last Checked 30/01/2017. 3. ICONOMI Cryptocurrencies Index (ICNX) 21 December 2016 Rebalancing, 4. ICNx trend chart,, Last updated 30th Nov 2017 5. Shadowcash (SDC) - The billion dollar baby!,, Last updated 16 August 2016. 
Disclaimer: I am not responsible for your financial decisions, nor am I advising you take a particular financial position. Rather I am sharing my experiences and hoping you form your own opinions and insights from them. Full disclosure: I have long positions in Ethereum (ETH), Shadowcash (SDC), ICONOMI (ICN), Augur (REP) and Digix (DGD).
submitted by joskye to Shadowcash [link] [comments]

Rootstock — Smart Contracts on the Bitcoin Blockchain

Rootstock — Smart Contracts on the Bitcoin Blockchain submitted by knight222 to btc [link] [comments]

Rootstock: RSK Labs Bring Smart Contracts To Bitcoin Best Bitcoin Mining Software That Work in 2020 🍓 - YouTube Bitcoin 2x vs Aion 8x (+ DZIŚ MEGA KONF: Rootstock, Algorand, Dfinity, Ethereum, Cosmos, Polkadot) Constantinople. Cryptocurrency. Mining - YouTube 5700 XT Ethereum Mining HASHRATE! - YouTube

It uses the Bitcoin blockchain instead of Ethereum’s chain, leveraging Bitcoin's network effect and security. “RootStock is a smart-contract peer-to-peer platform built on top of the Bitcoin ... Rootstock (RSK) is a two-way pegged sidechain to Bitcoin designed to enable full Turing-complete smart contract functionality for the Bitcoin ecosystem. The RSK network is secured via merge-mining with a Federation checkpointing mechanism, effectively allowing it to retain the security of Bitcoin’s double-spend proofs and settlement finality. Als das Bitcoin Mining 2009 entstanden ist, reichte als Bitcoin Mining Hardware der klassische Computer aus. Täglich konnte man von zu Hause durch das Schürfen einige Bitcoins erhalten. Wenn man bedenkt, dass heute ein Bitcoin über 1000€ wert ist, eine Traumvorstellung. Ganz so einfach ist es heutzutage allerdings nicht mehr. Es wird mittlerweile eine viel stärkere Rechenpower benötigt. Yet, it still relies on the same security guarantees as Bitcoin, which supports SHA-256 merged mining. RSK works as a Bitcoin Sidechain. When Bitcoins are transferred into the Rootstock blockchain ... The Rootstock concept is to combine an Ethereum compatible virtual machine that relies on the Bitcoin network to secure its operations, using sidechain technology and a merged mining approach. The ...

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Rootstock: RSK Labs Bring Smart Contracts To Bitcoin

This video is unavailable. Watch Queue Queue. Watch Queue Queue ️ Download for free from Best Bitcoin Mining Software: Best BTC Miners in 2020 Welcome to Bitcoin Miner Machine. #Bitco... What is Bitcoin Rootstock and why should you care? Programmer explains. - Duration: 10:56. Ivan on Tech 21,070 views. 10:56. What is Bitcoin Mining? (In Plain English) - Duration: 16:01 ... Mining. Subscribe Subscribed ... ethereum latest news, next ethereum upgrade, next ethereum hard fork, ethereum hard fork, bitcoin, bitcoin latest news, latest bitcoin news, bitcoin latest news ... Buy A 5700 XT For Mining Now? - Or A Non XT Which Can Be Flashed To An XT? - Download Claymore Miner v15.0 Here -...