Boxmining v2

Author: Michael Gu

  • Bitcoin Mining Guide (2020)

    Bitcoin Mining Guide (2020)

    Bitcoin Mining is the process of using specialized computer hardware to earn Bitcoin. The annual production of Bitcoin via mining is $3.5 Billion dollars, with most of that Bitcoin going to Bitcoin miners. As miners earn rewards in Bitcoin, their profits can change greatly on market conditions – making Bitcoin mining a high risk / high reward industry. Anyone can join the Bitcoin network and become a miner. In fact originally Bitcoin can be mined on all personal computers and commonly available hardware. However, in 2020, specialized hardware called Application Specific Integrated Circuits (ASICs). These machines mine Bitcoin at a very efficiency.

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    Bitcoin is now a household name. For an invention that is just over a decade old, this is certainly remarkable. A mysterious entity by the name Satoshi Nakamoto launched Bitcoin in 2008 as an alternative to central bank currency. Bitcoin mining is an alternative to obtaining Bitcoin on top cryptocurrency exchanges. Miners often sell Bitcoin on Over-the-Counter brokers to generate passive income.

    Learn more about Bitcoin with our simple guide for beginners.

    Decentralization is a central tenet of Bitcoin. Essentially, no single person controls either the issue or functioning of Bitcoin. This system can, therefore operate and transfer funds from one account to another without centralized control. 

    Centralized control of a financial system is pretty easy. How then, does a decentralized ecosystem like Bitcoin work? The important question therefore is; how does the ledger automatically update transactions without giving either entity power to control to entire blockchain? 

    How Bitcoin Mining Works 

    The basic feature of Bitcoin is the open-source nature of the Bitcoin protocol. This means that anyone can access and update the Bitcoin code. Similarly, anyone can update the Bitcoin ledger of transactions. All that needs to be done is for your computer to guess a random number that solves an equation from the system.

    The more powerful your computer is, the more guesses it can make per second. Accordingly, having a powerful computer exponentially increases your chances of “guessing right”. This allows you to add the next “block” of bitcoin transactions to the existing chain.  

    A more complicated representation is as follows. On the one hand, you have your miner that makes “guesses”. If your mining equipment makes the right guess, you get the right to add the next block of transactions to the blockchain. The block you create is sent to other computers so that they can validate it.  At the same time, other computers in the network validate the block and update their copies of the Bitcoin blockchain. More computing power translates to greater frequency of making the right guesses. However, in line with natural rules of probability, it is virtually impossible for one computer to get it right all the time. 

    This process is what Bitcoin mining entails in a nutshell. Computers compete to add the next block and in the process generate new blockchain which automatically goes into the network. The computer that solves the block earns a “block reward” and some transaction fees on the transactions entered into the blockchain. Uniquely, the process of validation is automatic and does not rely on centralized control. Miners can decide to hold the bitcoin they create or trade it to other bitcoin community members.  

    Bitcoin Mining Hardware

    In order to profitably mine Bitcoin, you’ll need specialized hardware called ASICs. These machines are designed to specifically mine Bitcoin’s SHA256 algorithm – in essence they only do one thing but do it well.

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    Mining Difficulty 

    Perhaps, you are thinking, if it’s that straightforward, what makes Bitcoin valuable? Well, Satoshi Nakamoto in anticipation of this made mining difficulty increase as computing power increased. The mining difficulty automatically adjusts to the increase in cumulative network computing power as more miners get involved. 

    AThe reason for this is to keep Bitcoin inflation in check. See, if there is a steady stream of Bitcoin, it is easier to have stable rollout process. When Bitcoin was first launched, you could profitably mine Bitcoin using a personal home CPU. As Bitcoin became more popular, miners moved to GPU (Graphics processing Units) to carry out more calculations. A GPU can enhance a computer’s computing power to the equivalent of 30 regular PCs.  

    Later, ASICs (Application Specific Integrated Circuits) came about. These were hardware equipment specifically to mine Bitcoin. Currently, they represent the gold standard in Bitcoin mining equipment and have occasional updates themselves. These ASICs have a higher “hash rate”, measured in hashes per second. Hash rate is the number of “guesses” the device can make per second. Consequently, the higher the hash rate, the higher the chance of earning bitcoins.

    Check out our video below to learn more about Bitcoin mining devices!

    Bitcoin mining-what do they use?

    Mining Pools 

    Even with top of the line mining equipment, the current mining landscape is incredibly competitive for individual miners. This has given rise to mining pools where miners combine computing power to compete effectively. If the pool successfully adds a block to the public chain, the pool spreads the reward among its members.  

    Currently, about a dozen large mining pools dominate Bitcoin mining. Mining pools charge you pool fees for participating which is something that can affect your profitability. 

    Top Bitcoin Mining Pools

    According to safestbettingsites.co.uk experts, there are 2 factors to consider when picking a Bitcoin mining pool – the location of the pool and it’s market share. The top priority would be location – the closer the pool is to you geographically the better. This is because sometimes due to network latency, shares that are mined could be “stale” – as new blocks are created rendering older blocks obsolete. It’s also important to know that Chinese servers are behind the Great Firewall of China, meaning that connections could periodically break. This means that choosing a server with low latency and close geographical location would give the highest yield.

    The second factor is the market share of the pool. The larger the market share, the more consistent the rewards. This is because blocks are continuously mined by the pool, and hence they can pay out at a consistent rate. This reduces the impact of the randomness of block creation.

    We recommend finding a pool close to your location with a high market share.

    Electricity Costs 

    Electricity is a major factor in Bitcoin mining. Bitcoin mining is certainly an electricity-intensive affair. This is because ASIC rigs have high computing power which the process of mining Bitcoin requires.  

    The high power consumption is in both powering the miner and cooling the machines which get really hot. This is why mining farms have cropped up in cold areas like Iceland to take advantage of natural cooling. 

    So, Is Mining Profitable? 

    This is a question that needs perspective. Mining on a personal PC is definitely not going to be profitable. This is because simple computers simply cannot compete with ASIC rigs and mining pools in terms of making more “guesses”. 

    So, the more computers you have and the faster your computer is- the greater your chances of generating the correct number and earning Bitcoin. Thus some people have entire farms of expensive computers to increase their chances.

    Currently, the block reward is 12.5 BTC for every block mined. Thus, you can only profitably mine Bitcoin with sophisticated equipment. Bitcoin mining farms are popular mining method to gain some of the block reward. Block rewards are set to half in 2020, reducing the mining rewards by 50%. This event is known as the “Bitcoin Halvening“. The current estimated date for the Halving is 13th of May 2020, after which the block reward will decrease from 12.5 to 6.25 bitcoin per block.

    One more obvious factor as to whether mining is profitable is the price of Bitcoin at any given time. Miners need to balance this with the expense of mining Bitcoin itself.

    Bitcoin Network Hashrate

    The Bitcoin Network Hashrate is currently above 120,000,000 TH/s. This means that if the hashrate of the network is coming for Antminer s17 (currently most popular type of Bitcoin ASIC), it would require 2.1 Million units. This would consume 5.4 Billion Watts of electricity, which is enough to power a small city! Mining rewards are split according to hashpower, with larger miners getting a high proportion of the daily Bitcoin mining reward.

    Summary 

    In summary, the following are factors which affect the profitability of mining Bitcoin:

    • Hashrate;
    • Block reward;
    • Mining difficulty;
    • Power consumption;
    • Pool fees; and
    • Bitcoin’s price at any given moment.

    Bitcoin mining is, therefore, a complicated task.

    However, investing significantly in a large mining pool is the most efficient way to go about it. The current circumstances make individual mining simply a waste of time when done on a small scale.  

    Nonetheless, it is still an activity that many investors have a significant stake in. The reality, however, is that the task will get progressively difficult with time and a select few with significant hashing power and cheap electricity will thrive.  

  • Bitcoin Mining will make a HUGE comeback in 2020

    Bitcoin Mining will make a HUGE comeback in 2020

    2020 is a huge year for Bitcoin mining. Huge changes to the mining ecosystem – changes that will spark another “gold rush” for mining. This will be spearheaded by two factors – the release of new more efficient mining hardware known as ASICs and Bitcoin halvening. The release of new hardware will give new players a bigger advantage in mining due to the efficiency factor – new ASICs generate more hashpower with less power. (https://www.sliderrevolution.com) We’re already seeing large funds like Fidelity Investments building large mega-watt mining facilities in North America and other continents. You can hare about the North America mining explosion in this podcast. This marks the return of mining as a major investment opportunity this year.

    Cryptocurrency Mining is a $6 Billion+ USD per year industry

    Sizes of Exchange, Mining, DeFi and ICO industries respectively

    One well-kept secret of the mining industry is the huge profits being generated by cryptocurrency miners (Bitcoin, Ethereum, DASH and Monero mining). Let’s start off with an industry Fact – every day $19,000,000+ USD dollars worth of cryptocurrencies are being produced by miners across the world. This means a total of $6.8 Billion dollars will be mined in 2020 alone. The biggest currency being mined is Bitcoin – with a 1,800 bitcoin being produced per day totalling to a value of $15,833,340 USD. To put everything into perspective, the ICOs only raised a total of $371 Million in 2019 according to icodata.io. Mining is currently the second largest industry behind exchanges (source: Bloomberg).

    Miners upgrading and replacing older hardware (often confused with “miner capitulation”)

    Ironically the miners have perpetuated myths such
    as “mining is not profitable” or “the bitcoin mining death spiral” to deter
    new players coming into this profitable space    . Many reports in 2019 have
    featured erroneous calculations that Bitcoin mining is not profitable. This is
    because researchers have incorrectly assumed that miners are getting
    expensive commercial electricity costs     of $0.07-12 cents per kilo-watt
    hour. This is far from the truth – mining operations receive considerable
    discounts as they purchase low priority power (meaning they will get cut off
    grid in the event of a surge in power usage). The actual figure is in the range
    of $0.01 – $0.03 per kw/h. This means miners are generating large amounts of
    profit. It is the biggest industry in the blockchain space, and yet it is
    surrounded by both mystery and false information.

    New
    Hardware (ASICs) is game changing

    New high efficiency Bitcoin mining hardware is coming in 2020 will be a huge game changer. Bitmain will be releasing the new Antminer s19 based on the 7nm manufacturing process. Competing ASIC manufactures are also making new chips, with Innosilicon and Canaan hot on the heels. This die shrink increase the hashpower of chips whilst reducing power consumption at the same time. These two factors mean these new units will be more efficient – the biggest factor contributing to Bitcoin mining profitability.

    Hashr8 – New MiningOS

    New operating systems dedicated for mining cryptocurrencies such as Hashr8 are also being launched this year. These OSes will make it easier for commercial, enthusiast and retail miners to improve mining efficiency and management. This is a huge positive trend for the industry as a whole as it makes professional tools mainstream and accessible to the general public. This will level the playing field and reduce the gap between large-scale miners.

    Sources

    Size of Defi Industry: https://defirate.com/defi-growth/
    Cryptocurrency Exchanges: https://hackernoon.com/where-the-multi-billion-dollar-cryptocurrency-exchange-industry-is-headed-f697af6fd7c0
    MinerUpdate: https://minerupdate.com

  • DASH mining guide (2020 Edition)

    DASH mining guide (2020 Edition)

    DASH mining is the process of generating new cryptocurrency using specialized mining machines known as “ASICs”. This guide teaches you the basics of DASH mining and how to set up your ASIC. DASH miners are specialized machines designed to solve the “X11” hash function used to protect the DASH network. When a miner finds a hashed result that meets the network difficulty requirements, it is submitted to the DASH network. Once verified, the miner will be rewarded in DASH cryptocurrency, thus generating an income for the mienrs. In order to mine DASH, you’ll need to get an ASIC. It’s no longer possible to mine DASH using CPU or GPU (unlike Monero or Ethereum mining).

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    What is DASH

    DASH (also known as Xcoin, Darkcoin) is a form of digital currency that is not controlled by any government or individual entity. DASH is based on Bitcoin technology, with some major differences between:

    • Anonymous transactions – DASH transactions are anonymous, so it is impossible to trace the source of DASH funds. This offers significant privacy benefits for DASH users.
    • Instant confirmation – Masternodes instantly confirm DASH transactions, whilst Bitcoin transactions take 10-30 minutes to confirm.
    • Low fees – DASH transaction fees are significantly less than Bitcoins or any other bank for that matter.
    • X11 Algorithm – DASH mining uses a different algorithm called X11.

    How Profitable is DASH mining

    Daily Revenue from mining rewards differ everyday – this is because mining difficulty changes and hence the daily reward. Revenue is dependent on the power of the Graphics Processor Unit (GPU) involved, with higher Hashrates being faster and more profitable

    • Network difficulty- Think of it this way, every day the same wage gets paid to all the DASH miners in the world.
    • The value of DASH– The current USD value of DASH is important for those seeking profits in fiat currency (USD) or even Bitcoin (BTC).

    What is X11?

    X11 is a chained hashing algorithm that uses 11 different hashing algorithms to secure the network (hence the “11”). The algorithms Blake, BMW, Groestl, JH, Keccak, Skein, Luffa, Cubehash, Shavite, Simd and Echo are used in sequence, repeated one after another until the very last function. This will give a final hash value which is then submitted to the blockchain if it meets the difficulty requirement. X11 is designed by Evan Duffield to improve the security of the blockchain. The reasoning is that if one of the algorithms are compromised, there are 10 others to continue to protect the network.

    The second reason X11 was designed is to make it harder to create mining ASICs (although we know that this is now possible). For a period of 2 years, it was possible to mine DASH using a conventional computer via CPU and GPU mining. However, this is no longer the case as chip makers have found ways to create high specialized X11 ASICs.

    DASH Pool Mining

    There are two main ways to mine DASH – solo mining or pool mining.

    Pool Mining (working together)

    • Work with others to mine and share rewards
    • Get paid per share, on a hourly or daily basis
    • Less random / dependent on luck
    • Pools take some fees (0.5-3% depending on pool)

    Solo Mining

    • You mine the entire block reward (3.11 DASH per block) – no pool fees
    • Random Chance and probability – you can go days or months without rewards
    • Not viable if Hashrate is low – single GPU will take years to mine a block

    Generally speaking, pool mining is the preferred method for most miners. This is because it provides a reliable stream of daily income, rather than large random bursts. Thus it allows miners to better calculate their profits and losses.

    List of top DASH mining Pools

    There are 2 factors to consider when picking a DASH mining pool – the location of the pool and it’s market share. The top priority would be location – the closer the pool is to you geographically the better. This is because sometimes due to network latency, shares that are mined could be “stale” – as new blocks are created rendering older blocks obsolete. It’s also important to know that Chinese servers are behind the Great Firewall of China, meaning that connections could periodically break. This means that choosing a server with low latency and close geographical location would give the highest yield.

    The second factor is the market share of the pool. The larger the market share, the more consistent the rewards. This is because blocks are continuously mined by the pool, and hence they can pay out at a consistent rate. This reduces the impact of the randomness of block creation.

    We recommend finding a pool close to your location with a high market share.

    Pool Market Share Location Reward System Pool Fee
    Antpool 26% Asia / China PPS (Pay per Share)
    PPLNS (Pay per last N Shares)    		 1-4%
    ViaBTC 17% Asia / EU PPS (Pay per Share)
    PPLNS (Pay per last N Shares)     		2-4%
    Coinmine.pl 7% EU PPLNS (Pay per last N Shares) 0-1%
    dash.btc.top 4.7% China PPS (Pay per Share) 0%-2%
    miningpoolhub.com 1% EU
    USA    		 PPS (Pay per Share)
    PPLNS (Pay per last N Shares)     		1%

    DASH Cloud Mining

    In 2020, DASH Cloud mining contracts are not profitable. This is because mining has become more competitive with lower margins – forcing miners to reduce costs. Cloud mining is hit the hardest because of they have large overheads like advertising spends and legal costs. In our latest research, we found that cloud mining providers were charging 184% for the same hashrate than home-made solutions.

    What else can I mine with X11?

    When you purchase a DASH miner, you’re limited to mining the X11 algorithm. X11 algorithm can mine coins such as Smartcoin, Pura, and Hatch. Admittedly, there are not many other good coins to mine using X11 ASICs, with DASH being the most valuable of the bunch. This is unlike other algorithms such as SHA-256 which is used in Bitcoin mining, Bitcoin cash and BitcoinSV.

    Masternodes vs. Mining

    There are two was to make a passive income on the DASH network – mining and masternodes. Like miners, masternodes also generate a DASH reward every time a block is created on the DASH network. The reward distribution is as follows:

    • 45% – Miners reward
    • 45% – Masternode reward
    • 10% – DASH treasure (DASH DAO – Decentralized Autonomous Organisation)

    As you can see, masternode node holders get equal amounts of rewards as miners. In order to become a masternode, a total of 1000 DASH must be staked by the node holder. At the current price of $60 per DASH, this means a total of $60,000 must be staked in order to gain masternode rewards.

    The function of masternodes is to provide additional layer 2 services to the network. This includes sending pre-approved transactions (InstantSend), improving security of the network (Chainlocks) and privacy features (PrivateSend). The 1000 DASH required by the masternode serves as collateral to ensure good behavior. If the funds are moved or spent, the associated masternode will go offline and stop receiving rewards.

    The biggest factor in deciding whether to mine DASH or getting a DASH masternode is the financial commitment factor. The advantage of a masternode is that the 1000 staked DASH can be fully returned at the end of operation, whilst mining equipment will become obsolete over time. In addition, masternode holders are given the right to vote in the DASH treasury which gives funding to future developments. The disadvantage of masternodes is the high initial investment, which cannot be less than 1000 DASH.

  • What REAL cryptocurrency mining looks like

    What REAL cryptocurrency mining looks like

    Cryptocurrency Mining can be tough to get started with – but there are always mining expert’s who are willing to lend a hand and share their wealth of experience. One such person is Alex Hillman, he runs cryptocurrency mining farm with over 300 GPUs. We asked detailed questions about how he got started, his mining setup and what advice he would give to beginners getting started with mining.

    Miner Bio: Alex Hillman

    Alex Hillman (@SpillyGuy) comes from a computer and programming background. He currently mines at 3 different locations, including dedicated warehouses and research labs. He mines with more than 300 GPUs, often times on multiple cryptocurrencies at the same time.

    Can you tell us about your mining operation (Where/ How many people are involved / Power usage)

    When the technology started taking off I knew it was something I wanted to be involved in with my computer and programming back ground. We currently run well over 300 gpus at 3 locations including dedicated warehouses and research labs.

    What type of setup – solo or pool mining do you use

    We tri or quad mine all of our gpu miners. Often we mine coins like Ethereum or Raven while dual mining something like LBRY or DECRED on the GPU extra memory. We accomplish this most cases with Claymore Miner. On the CPU we use a xmr-stak style miner to mine coins like Loki, Monero or Sumocoin.
    Last you can mine on pools that create extra tokens and with the fpga cards we do this as well.

    We mine on large pools like ethermine with a private
    workgroup of about 50 clients and friends to increase profits and luck factor.

    Do you use ASICs ?

    No we strongly disagree with the logistical cycle and ethics of building single use products like this that have such a short life span.

    Mining is Loud and Hot – have you ever been driven crazy by the noise or Danced around naked when setting up gear?

    I often jam while building but we try to do all of our
    thoughtful work away from the computers. But yes I have danced naked in the
    mines many times.

    What do you think is the biggest challenge when it comes to mining

    Having enough power to grow

    Do you ever dabble in speculative mining – if so what new coins are you into

    Yes spec mining can be wildy profitable. At the start we
    mined sumocoin about several hundred a week at 0.07 cents. We sold those coins
    at 14.00usd so it paid for our first dedicated miners.

    What happens when hardware breaks ? who repairs them?

    Spencer my business partner is the expert on trouble shooting most often its a software driver issue or a hardware issue like usb or risers going bad.

    What is the most controversial thing to happen to you?

    We helped attack the EOS and ADA blockchain with our GPU network in a effort to prove their lacking security.

    What advice would you give to a someone who wants to start out mining

    Start simple with a single computer at home. Use a gaming or work computer toss a good video card like a Nvidia 1070Ti or Nvidia 1080ti in it and start speculative mining first.

    Nvidia or AMD – which team are you on?

    Nvidia produces coins at a more efficent power rate and with
    far less loss and heat. Its really not a question amd is cheap and quick while
    Nvidia is the better option over time

    Cloud Mining – in your opinion are they legit or scam

    All a scam…. why would I rent you my money tree for any
    money less than it makes me. The business model is flawed from the start.
    Remote hosting is a thing but in most cases if someone is trying to rent you
    cloud mining they are hedging out their own risk by making you take it all.

  • China’s Blockchain Initiative: Nationwide effort to adopt Blockchain

    China’s Blockchain Initiative: Nationwide effort to adopt Blockchain

    China’s Blockchain Initiative

    China has start a country wide initiative to rapidly adopt Blockchain Technology and ‘urgently’ develop use cases. China’s President Xi Jinping personally appealed for a greater urgency to develop blockchain in-front of the Communist Party of China Central Committee. This sentiment was echoed in by state media People’s Daily published a front page article on “Placing Blockchain as one of the countries core initiatives, with a target on key breakthroughs“. On top of this, national TV station CCTV-2 had various news segments dedicated to discussion blockchain technology – with a key emphasis that Blockchain, not Bitcoin is China’s key focus.

    China’s leading newspaper, People’s Daily, calls for Blockchain Adoption

    This huge initiative to push Blockchain is clearly related to the launch of China’s National Digital Currency – “DCEP” (Digitial Currency / Electronic Payment). This new currency is issued by the People’s Bank of China (PBoC), and will act as both a replacement for Researve Money (M0) and as a digital cash. DCEP will initially be rolled out to banks affiliated with PBoC and eventually to the general public via Tencent and Alibaba.

    It is important to point out the DCEP will be a centralized & private blockchain. New currency on the network will be issued by the PBoC via authority from the Chinese Government. There will be no public participation in the network, unlike the decentralized Bitcoin network which uses Blockchain to form an open public consensus.

    Blockchain, Not Bitcoin

    One of the key areas of contention in the cryptocurrency space is whether a private or centralized Blockchains have value.

    • Opinion 1: Bitcoin, not Blockchain
    • Opinion 2: Blockchain, not Bitcoin

    Proponents of Bitcoin argue that Blockchain’s key value is that it allows for a decentralized network, a leaderless network where anyone can join, participate and verify transactions. The argument is that if the purpose of a Blockchain is record transactions like a database, centralized databases like MySQL or MongolDB will have higher efficiency than Blockchain. Thus, it would only make sense to use Blockchain when there is a need for public open consensus. Following this argument, cryptocurrencies like Bitcoin and Ethereum are neccessary for a Blockchain to function, as they play an intrinsic role in rewarding good actors on the network.

    Proponents of Blockchain argue that the Blockchain offers security and transparency, giving it a distinct advantage over traditional databases. China takes this argument one step further and actively discourages the use of cryptocurrencies and trading in cryptocurrencies (eg. Cryptocurrency exchanges are banned in China).

    Government condones “Air Coins” and Cryptocurrency Speculation

    State media People’s Daily have explicitly condoned cryptocurrency speculation and brought accusations against “air currency”. Air Currency, or air coins, is a chinese colloquial term used for cryptocurrencies that have no intrinsic value, very much like air. This move is designed to counter-act the surge in rushed venture capital investments into different cryptocurrencies in China, many of which don’t have a real use-case. In addition, the article explicitly called for illegal transactions and money laundering to be rectified, suggesting further enforcement actions against none state regulated cryptocurrencies. This heavy enforcement can be seen as a “stick” measure to push users away from decentralized cryptocurrencies into the centralized national currency, DCEP.

    “Blockchain is a Scam” is Censored by Social Media

    WeChat blocks articles calling Blockchain a Scam

    Experiments done by @cn_Ledger and other Chinese media sources have found that articles calling Blockchain a “scam” are actively being censored in China. Anyone posting these articles will find that they are quickly deleted and may face potential account suspensions. This type of media content control is standard in China once the Central Party issues a particular doctrine. Media platforms are quick to comply, or they will risk the removal of their ICP license.

    Cryptocurrency Mining is no longer “Banned” in China

    The Chinese Government is no longer pushing for the elimination of cryptocurrency mining (such as Bitcoin and Ethereum mining). This is a complete 180° reversal of government policy will take effect on 1 Jan 2020, meaning mining will a legal and taxable industry in China. Previously “Cryptocurrency Mining” was part of a list of industries to be eliminated. This change comes directly from the new edition of China’s Industrial Structure Adjustment Guidance Catalog, where an updated revision no longer mentions cryptocurrency mining as an industry to be phased out.

    Traditionally China has always played a major role in Bitcoin, Ethereum, Litecoin and DASH mining. This is mainly due to the abundant supply of cheap electricity in China (especially in the Sichuan and Mongolian regions), where electricity costs can go as low was $0.02 USD per kw/h. To find more about Bitcoin mining, check out our full Bitcoin mining guide.

    Overall this policy reversal sends strong positive signals about cryptocurrencies in China. This is a clear indicator that the Chinese Government recognizes the importance of mining and it’s role in decentralized public Blockchains. Such policy changes suggest a positive future where other policies halting cryptocurrency development could be reversed.

    Cryptocurrency trading is still banned

    China has banned cryptocurrency trading since 2017. The government has taken down chinese operation of big fiat exchanges such as OKex, Huobi and BTChina. Chinese exchanges no longer have fiat bank accounts. As users move to peer to peer trading. Alipay has made it clear that it will not tolerate crypto trading on it’s platform.

    What about Chinese Blockchain projects like Vechain and NEO

    Whilst China’s Blockchain Initiative explicitly discourages the speculation in cryptocurrencies – Blockchain projects are thriving in China. This is a Cryptocurrency is a core part of Blockchain – Satoshi Nakamoto created Bitcoin and Blockchain together in his 2009 white paper. So whilst the Publications by the central government tries the downplay cryptocurrency speculation, every public cryptocurrency network must have an associated platform token.

    Having the Blockchain initiative being pushed forward will greatly help the adoption of projects like Vechain in China. At the end of the day, the government validated the value proposition of Blockchain, answering many skeptics who are critical of Blockchain’s real life use case.

  • ThunderCore (TT) Explained: Will this Blockchain overtake Ethereum?

    ThunderCore (TT) Explained: Will this Blockchain overtake Ethereum?

    What is Thundercore?

    ThunderCore (TT) is a high-performance smart contract platform which allows for the running of decentralized applications (Dapps) and Decentralized Finance (DeFi). Thundercore promises low fees and compatibility with any app written for the popular Ethereum Platform. The underlying currency on Thundercore Network is TT, which is used as a transfer of value and for related gas fees on the platform.

    Thundercore attempts to Solve Scalability, allowing For Under One Second Confirmations. In the last couple of years, many blockchain projects have been working on scaling and improving network speeds. Until recently, it seemed nearly impossible to scale blockchains with big projects like Ethereum failing to do so. ThunderCore seems to have cracked it and may be on track to beating giants like Ethereum in scaling their platform.

    What is the aim of ThunderCore?

    ThunderCore aims to be a high-performance blockchain that enables mass adoption of dApps. It promises comparatively lesser transaction fees (low gas cost), compatibility, security and speed.

    Currently, transactions on the blockchain are very slow. This is because of the “Blockchain Trilemma” a term coined by Vitalik Buterin, the founder of Ethereum.

    Solving the Blockchain Trilemma

    Vitalik Buterin proposed that a Blockchain can only have a maximum of 2 of these properties

    According to the “Blockchain Trilemma“, a blockchain has three major features: decentralization, scalability and security.

    However, the blockchain trilemma proposes that it is very hard for a project to have all three features to a satisfactory condition. A network that is decentralized and has a tough security would not be scalable. Similarly, a blockchain that is decentralized and scalable will have little security etc.

    Buterin believes at a fundamental level, a blockchain network can only achieve two of the three features at any time. The blockchain trilemma could be the source of scalability issues on most cryptocurrency blockchains. Most crypto projects cannot handle high numbers of transactions while ensuring network decentralization and security.

    However, ThunderCore has found a solution for this problem.

    How does ThunderCore solve the Blockchain Trilemma?

    Many projects have tried and failed to continue their emphasis on decentralization and security while incorporating scalability. ThunderCore, however attempts to do this in a unique way. They do this by creating a Fast Path and a Slow Path. The Fast Path is for optimistic conditions. Whilst the Slow Path is for worst-case situations.

    What is the Fast Path and the Slow Path?

    The Fast Path is like a highway, allowing for instant confirmations on the network. However, if anything goes wrong on the Fast Path, ThunderCore users can resort to a Slow Path. The Slow Path is similar to a network of smaller roads. It isn’t very fast, but it will be reliable.

    For the Fast Path, ThunderCore facilitates fast and easy confirmation by 2 ways. The “Committee”, which is executed by a committee of stakeholders. And the “Accelerator” to linearize transactions and data.

    ThunderCore uses Ethereum as the Slow Path as it is one of the most stable networks in the industry. The slow path will take over when the network condition is bad and /or if there is an attack. It also acts as a check to see if the Accelerator is working.

    How to Stake Thundercore?

    Thundercore cannot be mined as a way to generate new TT or gain passive income, hence there is no thundercore mining. Instead to passively generate Thundercore, TT is staked by locking up TT in a particular wallet. The amount of rewards depends on the lockup duration, which can be 7 days, 30 days, 3 months, 6 months or 1 year. Staking Thundercore is easy, you can do this using the mobile wallet and joining a staking pool.

    What is the ThunderCore (TT) used for?

    The ThunderCore (also known was ThunderToken or TT) is the native cryptocurrency of the ThunderCore network. Analogous to ETH on the Ethereum network, ThunderToken is used for paying gas fees and value transfers.

    The ThunderCore Team

    ThunderCore Team: Chris Wang (CEO), Elaine Shi and Rafael Pass

    The team comprises of engineers, scientists and entrepreneurs. They previously worked in publishing academic papers relating to Bitcoin and smart contracts. They are also the founding members of the Initiative for Cryptocurrency and Contracts (IC3).

    Update Aug 2019: Chief Scientist Elaine Shi has announced that she will be leaving the ThunderCore Project.

    What is the Current Status of ThunderCore?

    The first Thunder release will be fully EVM (Ethereum Virtual Machine) compatible. Thus, allowing for direct migration of dApps.

    ThunderCore has already deployed its pre-release main-net. Therefore, developers can already start building on ThunderCore. Users can also start deploying smart contracts.

    How do I connect to the ThunderCore Mainnet?

    You can directly connect to Thundercore by changing the RPC settings on Metamask or changing the server on MyEtherWallet.

    ThunderCore Mainnet Settings for Metamask
    1. Install MetaMask: you can install the MetaMask browser extension on your browser. Create an account on the Metamask website and set up the security protocols (for a full guide check out our Metamask Tutorial);
    2. Get ThunderToken (TT): You can get tokens from the Metamask browser extension. Click on the drop down menu and select “custom RPC”. Go to “new network section” and select “advanced option”.
      1. Mainnet RPC URL: https://mainnet-rpc.thundercore.com
      2. Chain ID: 108
      3. Symbol: TT
    3. The TT symbol will appear on your Metamask. You can get 50 free tokens on the ThunderCore website by copying and pasting your Metamask TT address onto the appropriate field. You can also use this process to purchase tokens;
    4. Copy and paste the ERC20 contract: copy smart contract source code from Github; (use mine here: https://remix.ethereum.org/#version=soljson-v0.4.24+commit.e67f0147.js&optimize=false&gist=116b51b7e5bf2cd3f29f2136dac3f08f)
    5. Deploy through Remix ID; and
    6. Check on https://scan.thundercore.com/ .

    Pros and Cons of ThunderCore

    Pros

    • ThunderCore is compatible with the Ethereum network;
    • The network has a faster transaction speed compared to Ethereum;
    • ERC20 smart contracts can be deployed on this network;
    • The team are working on new features that would allow dApp interaction without gas;
    • ThunderCore allows users and developers to utilize existing tools such as Metamask and Truffle etc.; and
    • Developers can use familiar programming languages (e.g. Solidity) while carrying out smart contracts on the network.

    Cons

    • There is currently only one “Accelerator” on this network. This raises questions over how much power will be centralized. (Note the accelerator cannot freeze accounts or pause transactions indefinitely as this would lead to a re-election)

    Token metrics & Circulating supply

    The Thundercore is currently listed and trading on Huobi. The coin is listed as Thunder Token on CoinMarketCap.

    Huobi has released the Token metrics of ThunderToken (TT):

    Total Raised: $50M USD
    Angel round: $0.01 USD/token (2 years lock- till March 2020)
    Seed round: $0.02 USD/token (1 year lock – till Apr-May 2019)
    Final round: $0.10 USD/token(20% released on Feb 28, 40% to be released on May 28, 40% on Aug 28)
    Huobi Lite round: $0.015 USD/token, only $500,000 USD worth of tokens sold

    What we can deduce from this is that ThunderCore valuation dropped from the final Private sale time – from $0.1 to $0.15. Admittedly, the Huobi Lite tokens could also be considered to be sold at a discount to encourage more players to get in. There is controversy over the Huobi Lite sale of TT, as the token price was much lower than the Final Round – upsetting a lot of the initial investors and supporters (such as ThunderFans).

    ThunderCore Hub (Games and Thundercore Giveaways)

    ThunderCore Hub is a wallet and Dapp hub for mobile phones

    Currently ThunderCore Hub is doing a 150 TT giveaway to test out their new Android app. To quality, visit the ThunderCore Hub website and install the beta APK, register for an account and play dApp games to get the free TT.

    Conclusion

    ThunderCore is different because it scales both transactions and smart contracts. This could mean that blockchains can have thousands of transactions per second without compromising on security and decentralization.

    Update (May 1 2019): Mainnet RCP address and Team members & Linkedin Profiles
    Update (May 10 2019): Added listing information on Huobi
    Update (May 14 2019): Added ThunderCore Hub and TT Giveaway

  • Epic Cash Mining Guide

    Epic Cash Mining Guide

    What is Epic Cash?

    Epic Cash is a privacy focused cryptocurrency designed function like cash in the digital age. It’s got in-built privacy features using Mimblewimble technology (Epic Cash is a fork of GRIN – no traceable addresses, CoinJoin and IP-shielding). What makes Epic Cash different is that it can be mined using any of the 3 of the hottest mining algorithms – RandomX, ProgPoW and Cuckoo. This means both CPU and GPU miners can mine Epic Cash. In this tutorial we’ll cover the basics to get started and tips on solo-mining (if that’s you’re thing)

    To read more about the technology behind Epic Cash, check out our full guide on MimbleWimble

    Epic Cash Mining Hardware

    In order to mine Epic cash, you’ll need a modern Graphics Processor (GPU) or CPU that is fast enough to mine at a profitable rate. Generally speaking, hardware that is manufactured after 2018 is usually efficient enough to EPIC at a reasonable rate. Here is a list of the latest GPUs and their hashrate.

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    Epic Cash Mining Guide (Easy)

    The easiest way to mine Epic Cash is via a mining-pool (easy to set-up, predictable payments)

    For this setup, I’ll be using the Icemining Pool. To get started,

    • Download the Epic Cash mining client on either Windows or Linux: https://epic.tech/mining/ (download epic-miner).
    • Unzip the contents of the file
    • Edit the file epic-miner.toml (Linux – /etc/epic-miner.toml, Windows (same folder as epic-miner.exe)

    Add the following information to connect to the mining pool (replace USERNAME and PASSWORD with you’re desired information, keep this information safe as it’ll be required for withdrawal)

    # listening epic stratum server url
stratum_server_addr = "epic.icemining.ca:4000"

# login for the stratum server (if required)
stratum_server_login = "USERNAME"

# password for the stratum server (if required)
stratum_server_password = "PASSWORD"

    Now you’re good to start mining by running epic-miner (epic-miner.exe on windows, epic-miner on linux)

    At this point you can log onto the mining dashboard at https://icemining.ca/?address= to check if your miner is successfully connected and mining. You can optimise your mining efficiency by following this guide.

    Payouts

    To receive payouts from the pool, you’ll need to have a working epic-wallet. This is because unlike traditional cryptocurrencies, epic doesn’t have an “receive address”. Follow the setup guide to start your epic-wallet. To get the payouts, select “other listener” and enter your ip followed by the mining password.

    Unlike Bitcoin transactions where there are cryptocurrency addresses, Epic Cash withdraw requires that your epic-node is online and accessible. This is a major advantage of MimbleWimble transactions where there are no addresses, and hence less methods to invade a user’s privacy.

    How do you view balance on epic cash?

    You can view your epic cash wallet balance by typing the command “epic-wallet info” (Linux) or on Windows, open epic-wallet folder and run epic-wallet-info. Make sure Epic-wallet and Epic server are both running to view the balance.

    RandomX CPU mining

    RandomX is a new cryptocurrency mining algorithm designed improve the distribution of mined cryptocurrencies more evenly to a broader base of users. The idea is that everyone with a computer has a CPU, and hence an algorithm that favors the CPU will be more inclusive. Random is is designed to only function on CPUs, with strong resistance to both GPU and ASIC mining. This is achieved by making use of functions only available on modern day CPUs, such as virtualization. RandomX has already been audited and is currently deployed on Epic Cash and will be deployed on Monero.

    FAQ

    Whats your profit / earnings: I mined with CPU only (Intel Core i7 3700) and earned about 1.1 EPIC per day at 960 hps (1st October 2019). You can find out more benchmarks at epic benchmarks.

    Whats better – Solo Mining or Pool Mining: I’ve mining both solo and with the icemining pool. Pool mining was the best ways to start as I was able to find out my 24-h yield and move test send with smaller amounts of EPIC. Later one I migrated to solo-mining as I can minimize downtime as I ran my own wallet and node.

    Resources

    Epic Cash Code Repository: https://gitlab.com/epiccash
    Mimble Wimble Guide: https://boxmining.com/mimblewimble/
    Mimblewimble/grin Repository: https://github.com/mimblewimble/grin

  • Binance Token (BNB): What is it?

    Binance Token (BNB): What is it?

    Binance Token (BNB) is a cryptocurrency created by cryptocurrency exchange Binance. It’s main function is as a form of value transfer on Binance Chain, trading pair on Binance DEX and as a utility token on Binance exchange.

    Learn more about BNB and Binance as well with our video- What is Binance (BNB) in a nutshell.

    What is Binance Coin (BNB)?

    History

    BNB was launched through an Initial Coin Offering (ICO) on 14th July 2017 as an ERC-20 token before the Exchange was launched.

    A total of 15 Million USD dollars were raised during the event.

    Investors were compensated with BNB tokens during the ICO. At the time, each token was exchanging hands at US$0.10. The token’s price has since tremendously appreciated and is now one of the top 10 cryptocurrencies with the highest market capitalisation according to CoinMarketCap.

    The token initially ran on the Ethereum network but was later swapped 1:1 with BEP2 BNB tokens. This is so the tokens can instead run on their own Binance Chain.

    Uses for BNB on Binance Exchange

    1. Exchange Fees: Binance tokens can be used to reduce trading fees. Currently, Binance has a 0.1% trade fee and 50% of this fee can be paid in BNB. You are eligible for a 25% discount when paying for trading fees using the token.

    2. GAS: Binance will eventually feature advanced features that require GAS. The tokens can be used as GAS to power these advanced features.

    3. Binance Launchpad: BNB is used to participating in the Binance Launchpad. This is an Initial Exchange Offering platform where cryptocurrency projects will publicly issue tokens on the exchange to participants.

    4. Binance DEX: The Binance DEX (Decentralised Exchange) runs on the Exchange’s Binance Chain.

    5. Staking: Binance eventually wants to develop a decentralised exchange. The tokens will be used on the Exchange to stake transactions.

    Learn more with our Binance Exchange review.

    Other uses for BNB

    BNB can be used in other areas. For example:

    1. Paying for goods and services: The token can also be used to pay for goods and services at different establishments. For instance, Binance invested in TravelbyBit to enable users to pay for services at entire Brisbane Airport. TravelbyBit is an Australian startup that enables establishments to accept cryptocurrencies for goods or services. (https://woodlees.com) Currently, the startup has over 150 establishments.

    2. Accessing loans and cash: Holders of the Binance exchange token can withdraw cash from crypto ATMs. Additionally, they can access loans on the Nexo platform.

    3. Accessing services on social media platforms: For example, it can act as a gift token on Uplive, a live streaming platform.

    4. Trading and holding: The token can be traded just as a normal altcoin. Additionally, some people hold and speculate on the token in the hopes of profiting when the price appreciates.

  • Boxmining Camera and Recording Gear List

    Boxmining Camera and Recording Gear List

    The age of YouTube has brought a new medium of communication and sharing – we can now share out thoughts and insights in 4K videos real time. I want to share my passion of making videos with you and reveal some of my secrets and tricks to get good quality videos produced on time. One of the big reasons why the Boxmining Channel grew was because I was able to get coverage of important events on time and share insights with the community.

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    Studio Setup

    • Logitech Brio 4K
    • Sony a7III with Sony 55mm F1.8 lens
    • (Lights) Yongnou YN360 II Color LED Lights x2
    • (Lights) Elgato Keylight x2
    • (Capture Card) Elgato Camlink 4k
    • (Controller) Elgato Stream Deck
    • (Recording Software) Streamlabs OBS
    • (Editing Software) Adobe Premiere
    • (Editing Software) Final Cut X (sometime)

    I don’t have a big space to record my videos, so I try to make the best of it. I primarily use the Logitech Brio (it’s cheap and always ready to go, especially when we need to cover emergency events). For wider shots I have the Sony a7III which is connected to the computer via the camlink 4k – so I can switch cameras during live shows.

    The rest of the stuff makes look like an Elgato shill, but the whole ecosystem system is pretty amazing. The Elgato Stream Deck is for switch between scenes and controlling the lighting.

    Sound Setup

    This sound setup has to be honest a nightmare to get working well. I love the way the Shure SM7B sounds, especially since it’s directional and cuts out the noise from the nearby fans and air-conditioner unit. The only problem with the SM7B is that it’s very quiet requires a very good pre-amp. With help from Cameron (CryptoDaily), I got the Sound Devices Mix Pre-6.
    The preamps on the Mix Pre-6 is good enough to use the SM7B without a cloudlifter.

    Vlog Setup

    The Vlog setup is what I use when I’m travelling between conferences, meetups and even vacations. This is great for videos on the go or with motion in the background. Personally I don’t like carrying a lot bulky video equipment – nothing is worse than carrying a heavy tripod and camera case.

    • Osmo Pocket ($299) with audio 3.5mm audio adapter
    • Rode – VideoMic Pro+ ($299)

    The main choice here is to use the Osmo Pocket as my main video camera. As a handheld Gimbal, the Osmo Pocket makes walking and talking scenes much more watchable. It’s also small enough to fit into my pocket most of the time. Unfortunately, the built in sound is pretty bad, so the audio adapter highly recommended.

    Conference Setup

    This setup is my go to setup for conferences and event coverage, mainly due to the versatility and low light performance. The Sony a7III performs extremely well in low light conditions, making it perfect for dimly lit rooms or conference venues.

    Vechain Summit 2019 Interview with Vechain CEO Sunny Lu
    • Sony a7III
      • Sony 24-70mm F2.8 GM Lens
      • Sony 16-35mm F4 Lens
    • (Vlog Mic) Rode – VideoMic Pro+
    • (Conference) Sennheiser AVX Set ($999)

    The Sony a7III really shines – with a large battery and excellent video capabilities. When paired with the 24-70mm lens, the results look good (although it’s VERY heavy to carry).

  • Ethereum (ETH): What is it? The complete beginners guide

    Ethereum (ETH): What is it? The complete beginners guide

    What is Ethereum?

    Ethereum has been described as a revolutionary breakthrough- with claims that it may one day change how banking, gaming and even social media is operated. Since it was proposed in late 2013, Ethereum grew from an idea proposed by 21 year old college dropout to a platform that is now worth $20 Billion USD market capital. What is all this hype about – is Ethereum truly a groundbreaking network potentially worth trillions of dollars? In this article we’ll discuss the basics of Ethereum in plain English, along with examples of what makes Ethereum different from other networks.

    To explain Ethereum, we must first understand that most of the world operates in a centralized manner. For example, iPhones are mad by Apple, and Apple has complete control over what can and cannot go on the phone. Facebook is a social media platform, and the corporation can make decisions on who gets accounts Facebook accounts, what content gets shared and more important, who gets money (ie Facebook). Taking this example even further, we realize that the Banking world is also the same – central banks have the power to make critical decisions and benefit from the traditional centralized banking infrastructure.

    Ethereum offers an alternative to this – instead of trusting a central party such as Apple, Facebook or JP Morgan Chase, we can trust in each other. Instead of centralization, Ethereum offers a solution where we can go in a completely new direction – towards decentralization.

    What is Decentralization

    The concept of trusting each other was previously impossible without the advent of a few cryptographic technologies. After all, you wouldn’t go on the street and randomly trust a stranger with $1000. Nor would you want to trust a stranger with your social media information, or running your iPhone.

    Ethereum Network

    Once a program is deployed to the Ethereum network, computers also known as nodes will ensure it is executed exactly the way it is intended. Ethereum refers to the the infrastructure for running smart contracts, dApps, and tokens worldwide. It is commonly mistaken for the currency, Ether, which is the native currency on the Ethereum network. To perform actions such making a transaction on Ethereum, Ether (ETH) is needed.

    Decentralized Platform

    Ethereum is a decentralized smart contract platform the runs decantralized applications (Dapps) and decentralized finance (DeFi). The vision behind Ethereum was to improve upon Bitcoin by allowing for the execution of a full range of code – via the turing-complete programming language Solidity. Ethereum is currently used to create tokens, such as Basic Attention Token ($BAT), creating digital collectible items (ERC 1155) and decentralized finance (MakerDAO). On the Ethereum network, the currency Ether (ETH) is used as a form of value transfer and to purchase “gas” required to power smart contracts.

    Ethereum is an open-source platform for building and deploying decentralised applications i.e. dApps. Its native currency, Ether (ETH) serves as “gas” for running computations and transactions for dApps.

    Main features of Ethereum

    Ethereum 2
    Ethereum 2
    • Decentralised: No one party has majority control over the Ethereum network’s computing power.
    • Ether is a cryptocurrency: It can be used as “gas” to power dApps and is a store of value.
    • Automatic: Processes on the network can be executed without human intervention.
    • Public: It is accessible by anyone with a computer and internet connection.

    What are dApps?

    Users can build and run decentralised applications (dApps) on the network. They serve some particular purpose to its users and must have these common features:

    1. Open source: The dApp’s source code must be publicly available. Changes to the source code require agreement by a majority of users.
    2. Decentralized: Records of how the dApp were used are stored on a public blockchain. This blockchain is not subject to any controlling entity.
    3. Incentivized: dApps must use and provide its unique tokens or digital assets to users as a reward for their contribution.
    4. Protocol: The community of users must agree on a cryptographic algorithm to show proof of value. Ethereum is currently using Proof of Work as its distributed consensus system. In future, this will change to Proof of Stake (PoS). Learn more about Proof of Stake.

    Examples of dApps include:

    • Enjin: a suite of products for creating, storing trading and integrating blockchain-based in-game assets. Learn more about Enjin here.
    • Bancor: a token exchange.

    Future of Ethereum

    Ethereum’s latest upgrade, “Constantinople” was launched on 28th February 2019.

    The next upgrade “Istanbul” is tentatively scheduled for 16th October 2019. It will have several updates. These include a new Proof of Work Algorithm designed to close the efficiency gap available to specialised ASIC miners.

    Click here for a list of the upgrades under the Istanbul upgrade.

    The ecosystem will gear up towards “Ethereum 2.0”- known as “Serenity”. Its major update will be a shift from Proof of Work to Proof of Stake.

    Learn about how Ethereum’s shift to Proof of Stake and how this will affect users.