#1
Hi Pit,

As of late, I have been investing my energies into writing a new book- incase you are wondering, it is a fictional horror novel, incorporating very modern technological themes into the story.

Incidentally, I have been partially discussing and exploring the newest most prevailant form of alternative currency (that im aware of)- bitcoins.

I'm not an incredibly tech-savvy guy. I was wondering if anybody here had an exceptional understanding of how the process of their creation and aquiring works, and could explain it to me in a more pragmatic manner.

Based on a good amount of google searching, here is some of what ive gathered (but please correct me if anything i say is wrong): every 10 minutes, a block is created- the block is a string of character (64 chars long?), and it increases in complexity based on all the blocks before it, and however effectively they are solved (it wants to be solved around 10 minutes). (Question: is the block considered a 'hash', algorithm, or both? Hopefully this portion can be expanded upon). So groups of people devote electricity and computing power towards completing the block, and whoever does it is rewarded bitcoins (the total number rewarded is based on a geometric scale over time, and is divided by who contributed the most power). (Question: what happens if nobody solves the block? Who gets the prize?)

Anyways, thats my limited understanding. Hopefully somebody can give me a hand- and maybe if you do, I will send you a chapter from my book so far if you're interested. Thanks!
Quote by suckmahnuts
Watterboy, I love you.

Quote by davrossss
You are now my favourite person on UG.....You write cool shit.

Quote by wannabestoner69


#2
ill explain it to you for 50 bitcoins
Quote by korinaflyingv
On the come up we were listening to Grateful Dead and the music started passing through my bowel and out my arsehole as this violet stream of light. I shat music. It was beautiful.
#4
You can read the wiki on it, which explains it.

But, basically, it's a "currency" that you can use on participating websites. The amount of bitcoins in circulation will increase at a certain rate until it reaches a certain amount. I don't remember off-hand what that certain amount is. Something like 10 billion I think.

But once they've all been circulated, that's it.

This is opposed to most of the worlds currency, especially here in the US, which just prints money like toilet paper, decreasing our dollars value on a daily basis.

This is why a damn candy bar used to cost 5 cents and now it's 1.50
#5
Quote by saint_berzerker
You can read the wiki on it, which explains it.

But, basically, it's a "currency" that you can use on participating websites. The amount of bitcoins in circulation will increase at a certain rate until it reaches a certain amount. I don't remember off-hand what that certain amount is. Something like 10 billion I think.

But once they've all been circulated, that's it.

This is opposed to most of the worlds currency, especially here in the US, which just prints money like toilet paper, decreasing our dollars value on a daily basis.

This is why a damn candy bar used to cost 5 cents and now it's 1.50


I see, I see. I think the primary portion where I lack understanding is everything up to the point where somebody is rewarded the actual bitcoins. The attractivness of the currency makes sense to me.
Quote by suckmahnuts
Watterboy, I love you.

Quote by davrossss
You are now my favourite person on UG.....You write cool shit.

Quote by wannabestoner69


#6
Quote by saint_berzerker
This is opposed to most of the worlds currency, especially here in the US, which just prints money like toilet paper, decreasing our dollars value on a daily basis.

This is why a damn candy bar used to cost 5 cents and now it's 1.50

hurr
Quote by korinaflyingv
On the come up we were listening to Grateful Dead and the music started passing through my bowel and out my arsehole as this violet stream of light. I shat music. It was beautiful.
#7
Quote by saint_berzerker
This is opposed to most of the worlds currency, especially here in the US, which just prints money like toilet paper, decreasing our dollars value on a daily basis.

This is why a damn candy bar used to cost 5 cents and now it's 1.50


I really hope you're kidding

Anyways, you've got the basic gist of it. You need an extremely powerful, specifically designed processor (lookup butterfly labs, people are using standalone hardware instead of video cards now) and they basically just work their asses off trying to solve complex algorithms. However, solving one block by yourself can take AGES (several months), so usually what happens is people join a mining group, so the calculation is spread out among a large group of miners so it easier to compute, and whenever a block is solved the rewarded bitcoins are spread throughout the group based on their contribution to solving it.
#8
Quote by RPGoof

I really hope you're kidding

Anyways, you've got the basic gist of it. You need an extremely powerful, specifically designed processor (lookup butterfly labs, people are using standalone hardware instead of video cards now) and they basically just work their asses off trying to solve complex algorithms. However, solving one block by yourself can take AGES (several months), so usually what happens is people join a mining group, so the calculation is spread out among a large group of miners so it easier to compute, and whenever a block is solved the rewarded bitcoins are spread throughout the group based on their contribution to solving it.


So, does this mean that there are blocks that are unsolved right now, just waiting to be solved? I was under the impression that every 10 minutes, somebody is awarded for the previous block, and then a new block is made- so every 10 minutes, there would only be one block available. And if this is the case, what happens if the block is complex and nobody solves it in the 10 minutes?
But in reality, is it that every 10 minutes a block is MADE, but not necessarily solved? Thus, there may be multiple blocks available to solve at any given time?
Quote by suckmahnuts
Watterboy, I love you.

Quote by davrossss
You are now my favourite person on UG.....You write cool shit.

Quote by wannabestoner69


#9
Bitcoins are the shit you want to use when you want to buy/sell on the darknet, because of their anonymity. So for Silk Road, BMR and all those underground market places like that.