Bitcoin, the libertarian’s dream currency, is far past the heady days of late 2013. When one Bitcoin was worth $1000 USD, there was no end to what could be done; new, gigantic mining rigs were being created, every online store jumped onto the bandwagon, and the price of Bitcoin inevitably crashed. Right now, the exchange rate sits at about $280 USD per coin, valuing all the Bitcoins ever mined somewhere around $4 Billion USD. That’s a lot of coins out there, and a lot of miners constantly verifying the integrity of the greatest thing to come from the Bitcoin community: the blockchain.
The bitcoin is just a record, or the ledger, of every transaction that has ever occurred on the Bitcoin network. It’s distributed, and the act of mining coins creates new blocks, or another set of data committed to the blockchain for eternity. While magical Internet money™ is by far the most visible product of the blockchain, developers, investors, and other people in the know are gushing about the possibilities of what can be done with a distributed record that can’t practically be altered and can’t be deleted.
[Jon Matonis], a figurehead for the entire cryptocurrency movement, recently said Bitcoin has become the strongest computer in the world, and stronger than all of the top 500 supercomputers combined. All of this computational power is effectively funneled in to verifying the integrity of the blockchain.
Bitcoin and other cryptocurrencies are not just a completely anonymous payment system; that’s only a side effect of the blockchain. The blockchain is the only inherently valuable part of a bitcoin; each transaction is logged in the blockchain, providing incredible security over how every coin is spent. No currency in the history of mankind has ever had a record of how every dollar or denarius is spent, and at the very least makes for very interesting economics research. Now, thousands of researchers across the globe are wondering what else the blockchain can do; tapping the power of the most powerful computer on the planet must have some interesting applications, and in the last few months, a few ideas have popped up.
Continue reading “Applications for the Bitcoin Blockchain”
Bitcoin, the solution to the two generals’ problem, an economic case study in the history of currency, and the reason AMD graphics cards were so expensive a few years ago, is now accepted in The Hackaday Store.
Yes, we have a store, loaded up with swag, tools, and cool toys. We’re always stocking more If you have coin sitting around, you can pick up a great little logic analyzer, a 3D printer, an ingenius two channel multimeter, ESP8266 boards, the ever popular Hackaday swag and a ton more. That 3D printer will cost you ฿ 3.75. A Mooshimeter is just ฿ 0.50.
It’s the perfect time to turn magical Internet money into something with real, intrinsic value, before the value of Bitcoin drops even more. Sure, we accept government-backed currency as well… but when will you have the chance to spend those hard-mined
If there’s one thing Bitcoins can benefit from, it’s easier accessibility for first-time users. The process can be a bit daunting if you’re new to cryptocurrency, but [mayosmith] is developing an open Bitcoin ATM to help get coins in the hands of the masses. There are already some Bitcoin dispensers out there. The Lamassu is around 5k a pop, and then there’s always the option of low-tech Condom Vending Machine conversions.
[mayosmith’s] build is still in the proof-of-concept phase, but has some powerful functionality underway. The box is made from acrylic with a front plate of 12″x12″ aluminum sheet metal, held on by 2 aluminum angles and some bolts. Slots were carved out of the aluminum sheet for the thermal printer and for bill acceptor—the comments identify it as an Apex 7000. Inside is an Arduino with an SD Shield attached. Dollars inserted into the acceptor trigger the Arduino to spit out a previously-generated QR code for some coins via the thermal printer, though all values are pre-determined at the time of creation and stored sequentially on the SD card. Stick around for a quick video below, and check out the official page for more information: http://openbitcoinatm.org
Continue reading “Open Bitcoin ATM”
After hearing about cryptocurrencies like Bitcoin, Litecoin, and Dogecoin, [Eric] decided he would have a go at designing his own mining rig. The goals of the project were to have a self-contained and stackable mining rig that had all the parts easily accessible. The result is this awesome computer enclosure, where GPU mining and traditional woodworking collide.
For mining all those coins, [Eric] is using five R9 280x GPUs. That’s an impressive amount of processing power that ended up being too much for the 1500W power supply he initially planned to use. With a few tweaks, though, he’s managing about 2.8 Mh/s out of his rig, earning him enough dogecoins to take him to the moon.
In the video below, you can see [Eric] building his rig out of 4×8 framing lumber. This isn’t a slipshod enclosure; [Eric] built this thing correctly by running the boards through a jointer, doing proper box joints with this screw and gear-based jig, and other proper woodworking techniques we don’t usually see.
Continue reading “Wow. Such Mining Rig. So Amaze.”
For something that’s used for such banal transactions like buying drugs and sending the Jamaican bobsled team to the Olympics, cryptocurrencies such as Bitcoin are actually very impressive pieces of software. It’s a very ingenious solution to the Two Generals Problem, and the fact it made a few Bitcoin early adopters very, very rich doesn’t hurt either. [Ken Shirriff] decided to take a look at the Bitcoin protocol by creating a Bitcoin address and transferring a small amount of bitcoin to that address, manually. It’s a great look at how the Bitcoin protocol actually works, and how ingenious this protocol actually is.
[Ken]’s first task was to create a Bitcoin address. This is a 256-bit private key is the basis for the Bitcoin wallet private key (after being encoded as ASCII characters), and as the 512-bit public key (after being sent through an elliptic curve algorithm). The 512-bit public key is then hashed with SHA-256 and RIPEM 160 to generate the 160-bit public key hash and the Bitcoin address.
After creating a bitcoin address and wallet, [Ken] set out on manually creating a transaction. The idea was to buy a few cents (USD) from Coinbase and send them to his manually created address. This involved creating a transaction according to the Bitcoin spec and signing the transaction. Signing each Bitcoin transaction is the key to Bitcoin’s security, and is done with a small bit of code written in the Bitcoin scripting language.
With everything written in Python, [Ken] was ready to send his transaction off into the Bitcoin network. This was done by finding a few peers on the Bitcoin network and sending off a few packets. After a little bit of mining on the network, [Ken]’s transaction went through, confirmed by a deposit into his Bitcoin wallet.
It’s an awesome writeup and impressive achievement to manually send a few Bitcoins from one wallet to another. More impressively, [Ken] provided some amazing insight into how the Bitcoin protocol works, and how much work went into its creation.