The public has latched onto the recent market events with an intense curiosity brought about by a greed for instant riches. In the last year alone, the value of Bitcoin has risen by 1,731%. We’re talking gold rush V2.0, baby. Money talks, and with a resounding $615 billion held up in cryptocurrencies, it is clear why this is assuredly not the first cryptocurrency article you have read — maybe even today. An unfortunate side effect of mass interest in a subject is the wildfire-like spread of misinformation. So, what exactly is a blockchain, and what can you still do now that everyone has finally jumped on the cryptocurrency bandwagon?
It was reported, and Hackaday has now confirmed, that counterfeit Benchoff Bucks were being circulated at this weekend’s Hackaday Superconference.
The fake bills were distinguishable by their poor printing quality and vastly smaller size than official ‘Bucks. Their appearance should help to relieve the skyrocketing value of the Benchoff Buck, whose dominance as the preferred paper currency at hardware conferences has caused deflationary forces to take hold as ‘Bucks holders hoard them.
Hackaday’s resident economists hope that the appearance of the counterfeits will begin to devalue the currency. Diminishing the strength of Benchoff Bucks has long been the goal for the portion of the Hackaday community who believe we need to move off of fiat Benchoff currency in favor of Benchoff-based cryptocurrency.
We anticipate seeing the long-rumored ICO early in 2018, likely in conjunction with other live Hackaday events. No word yet on the name of the new cryptocoins, but it is worth mentioning that the ‘Benchoff Nickel‘ has already been taken.
After an exhaustive investigation, the forger has been identified. They were given a pat on the back, a firm handshake, and charged with the responsibility of documenting the forgery effort as a Hackaday.io project. You know who you are… and we have our eye on you.
Stay tuned for reports on other shenanigans that took place at the Hackaday Superconference over the weekend. In the meantime, you can check out some of the epic talks that were live-streamed as they happened.
Anyone keeping up with financial news today is surely inundated with stories about Bitcoin and other cryptocurrencies. While most of the news is about the potentially inflated value of some of these coins, and how drastically they have changed in price in just a decade, there are other interesting things going on behind the scenes. For example, the currency Ethereum allows for a distributed programming platform of sorts to be implemented in the blockchain, which [GusGorman402] has taken advantage of in his latest project (YouTube link, embedded below).
The device that he built is based on an ESP8266 which connects to a router running an instance of a Go Ethereum node. Essentially, he uses the Ethereum blockchain to control an LED connected to the ESP8266 using a feature of Ethereum called a smart contract. While this might be a misleading name, a smart contract is basically an autonomous program that can do virtually anything a programmer writes into it. While this is a roundabout way to write a “Hello World” program, it does demonstrate the power of the Ethereum platform when compared to other cryptocurrencies.
If you’re interested in currency trading, blockchains, cryptography, or the future of computing, be sure to check out the detailed video after the break. It’s a curious new tool, and it will be interesting to see how developers and hackers alike use it to accomplish things we’ve never thought of yet.
QR Codes are a two-dimensional type of matrix barcode that are used for a variety of uses. They’re one way of turning a long piece of string data into an easily machine-readable format. For this reason, they can be used to store private keys for encryption and crypto-currency purposes. [Roger Ver] attempted to use a QR code containing a private key to give away some cryptocurrency on TV, but the code was blurred out by the broadcaster. Not ones to give up easily, [Michael] and [Clément] decided to see if they could reconstruct it anyway.
The work begins, as so many cryptographic exploits do, with the collection of as much of the plaintext key as possible. By stepping through the footage frame by frame, small pieces of the unobscured QR code were found, as well as some of the private key itself. By combining this with enhanced images of the blurred code, the team were able to put together less than one third of the QR code. The team had other tricks up their sleeve though – they knew the QR contained a private key of a particular format, and were able to figure out the QR code was 41×41 pixels.
By using this data along with a careful study of the QR code format, the team were able to put together some code in Python to brute force the key. After 838849 trials, the key was found, and the team were able to claim the prize. It’s a great example of cryptographic analysis – and so is this story on hacking your own password.
[Thanks to Esko for the tip!]
Distributed computing is an excellent idea. We have a huge network of computers, many of them always on, why not take advantage of that when the user isn’t? The application that probably comes to mind is Folding@home, which lets you donate your unused computer time to help crunch the numbers for disease research. Everyone wins!
But what if your CPU cycles are being used for profit without your knowledge? Over the weekend this turned out to be the case with Showtime on-demand sites which mined Monero coins while the users was pacified by video playback. The video is a sweet treat while the cost of your electric bill is nudged up ever so slightly.
By now, everyone and their dog has at least heard of Bitcoin. While no government will accept tax payments in Bitcoin just yet, it’s ridiculously close to being real money. We’ve even paid for pizza delivery in Bitcoin. But it’s not the only cryptocurrency in town.
Ethereum initially launched in 2015 is an open source, it has been making headway among the 900 or so Bitcoin clones and is the number two cryptocurrency in the world, with only Bitcoin beating it in value. This year alone, the Ether has risen in value by around 4000%, and at time of writing is worth $375 per coin. And while the Bitcoin world is dominated by professional, purpose-built mining rigs, there is still room in the Ethereum ecosystem for the little guy or gal.
Ethereum is for Hackers
There may be many factors behind Ethereum’s popularity, however one reason is that the algorithm is designed to be resistant to ASIC mining. Unlike Bitcoin, anyone with a half decent graphics card or decent gaming rig can mine Ether, giving them the chance to make some digital currency. This is largely because mining Ethereum coins requires lots of high-speed memory, which ASICs lack. The algorithm also has built-in ASIC detection and will refuse to mine properly on them.
Small-scale Bitcoin miners were stung when the mining technology jumped from GPU to ASICs. ASIC-based miners simply outperformed the home gamer, and individuals suddenly discovered that their rigs were not worth much since there was a stampede of people trying to sell off their high-end GPU’s all at once. Some would go on to buy or build an ASIC but the vast majority just stopped mining. They were out of the game they couldn’t compete with ASICs and be profitable since mining in its self uses huge amounts of electricity.
Economies of scale like those in Bitcoin mining tend to favor a small number of very large players, which is in tension with the distributed nature of cryptocurrencies which relies on consensus to validate transactions. It’s much easier to imagine that a small number of large players would collude to manipulate the currency, for instance. Ethereum on the other hand hopes to keep their miners GPU-based to avoid huge mining farms and give the average Joe a chance at scoring big and discovering a coin on their own computer.
Ethereum’s rise to popularity has basically undone Bitcoin’s move to ASICs, at least in the gamer and graphics card markets. Suddenly, used high-end graphics cards are worth something again. And there are effects in new equipment market. For instance, AMD cards seem to outperform other cards at the moment and they are taking advantage of this with their release of Mining specific GPU drivers for their new Vega architecture. Indeed, even though AMD bundled its hottest RX Vega 64 GPU with two games, a motherboard, and a CPU in an attempt to make the package more appealing to gamers than miners, AMD’s Radeon RX Vega 56 sold out in five minutes with Ethereum miners being blamed.
Besides creating ripples in the market for high-end gaming computers, cryptocurrencies are probably going to be relevant in the broader economy, and Ethereum is number two for now. In a world where even banks are starting to take out patents on blockchain technology in an attempt to get in on the action, cryptocurrencies aren’t as much of a fringe pursuit as they were a few years ago. Ethereum’s ASIC resistance is perhaps its killer feature, preventing centralization of control and keeping the little hacker in the mining game. Only time will tell if it’s going to be a Bitcoin contender, but it’s certainly worth keeping your eye on.
Even if we don’t quite understand what’s happening in a Bitcoin mine, we all pretty much know what’s needed to set one up. Racks of GPUs and specialized software will eventually find a few of these vanishingly rare virtual treasures, but if you have enough time, even a Xerox Alto from 1973 can be turned into a Bitcoin mine. As for how much time it’ll take [Ken Shirriff]’s rig to find a Bitcoin, let’s just say that his Alto would need to survive the heat death of the universe. About 5000 times. And it would take the electricity generated by a small country to do it.
Even though it’s not exactly a profit center, it gives [Ken] a chance to show off his lovingly restored Alto. The Xerox machine is the granddaddy of all modern PCs, having introduced almost every aspect of the GUI world we live in. But with a processor built from discrete TTL chips and an instruction set that doesn’t even have logical OR or XOR functions, the machine isn’t exactly optimized for SHA-256 hashing. The fact that [Ken] was able to implement a mining algorithm at all is impressive, and his explanation of how Bitcoin mining is done is quite clear and a great primer for cryptocurrency newbies.
[Ken] seems to enjoy sending old computer hardware to the Bitcoin mines — he made an old IBM mainframe perform the trick a while back. But if you don’t have a room-size computer around, perhaps reading up on alternate uses for the block chain would be a good idea.
[via Dangerous Prototypes]