The Dogecoin Mining Diaries

Solution 2 would deal with scaling by allowing for more information to be processed each 10 minutes. .

In July 2017, bitcoin miners and mining companies representing approximately 80% to 90% of their networks computing power voted to incorporate a program that will reduce the amount of information needed to confirm each block. That is, they went with Solution 1.

The app that miners voted to add to the bitcoin protocol is called a segregated witness, or SegWit. This term is an amalgamation of Segregated, meaning to separate, and Witness, which refers to signatures on a bitcoin transaction. Segregated Witness, then, means to separate transaction signatures out of a block and join them as an extended block.

Less than a month later in August 2017, a group of miners and developers initiated a hard disk, leaving the bitcoin network to make a new currency using the identical codebase as bitcoin. Though this team agreed with the need for a solution to scaling, they worried that adopting segregated witness technology would not fully address the scaling problem. .

Instead, they went with Solution 2. The resulting currency, called bitcoin cash, increased the blocksize to 8 Mb in order to accelerate the verification procedure to permit a performance of around two million transactions every day. At the time of writing, Bitcoin Cash is valued at $545.00 to Bitcoins $6,328.11.

The Trezor: January 4, 2016: 7.4 BTC $3,000In January 2016, I spent $3,000 to buy 7.4 bitcoins. At the moment, it looked an entirely worthwhile thing to do. I'd recently started working as a research director in the Institute for the Futures Blockchain Futures Lab, and that I wanted firsthand experience with bitcoin, a cryptocurrency that uses a blockchain to list transactions on its network.

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It was surprisingly simple to buy stuff with the cryptocurrency. I utilized the airBitz program to purchase Starbucks credit. I utilized Purse.io to obtain a wireless security camera doorbell from Amazon. I used bitcoin in Meltdown Comics in Los Angeles to buy picture novels.By November, bitcoins value had nearly doubled since January and was continuing to view it increase almost everyday.

Id been keeping my bitcoin keys on a web-based wallet, however I wanted to move them to a more protected place. Many online bitcoin providers retain their customers confidential bitcoin keys, which means the accounts are vulnerable to hackers and fraudsters (recall the time Mt. Gox lost 850,000 bitcoins from its clients accounts in 2014) or governments (like the time BTC-e, a Russian bitcoin exchange, had its domain seized by US District Court for New Jersey in August, freezing the assets of its users). I interviewed a handful of bitcoin specialists, and each of them told me that that safest way to protect your cache was supposed to use something called a pocket.

I settled on a hardware wallet called the Trezor (that the Czech term for secure ), described by the manufacturer as bulletproof. I bought one on November 22 for $100 on Amazon (again, through Purse.io).When that the Trezor arrived, I plugged it into my computer and went into the Trezor website to set this up.

The site instructed me to write that site down 24 words, randomly generated by the Trezor one phrase at a time. The words were just like conscious, move, fashion, and sour. I wrote them on a piece of orange paper. Next, I had been prompted to create a PIN. I wrote it down (choosing a couple of short number combinations I was familiar with and could easily remember ) on the exact same piece of paper as the 24-word list.The Trezor website explained these 24 phrases were my recovery words and could be used to generate the master private key to my bitcoin.

It was important for me to maintain the newspaper hidden and safe, because anyone could use it to steal my 7.4 bitcoins. I transferred my currency from my web-based wallet to my Trezor, tossing both the Trezor and the orange piece of paper into a desk drawer in my home office.

I had been going to get it done right following the holidays.The Mistake: March 16, 2017: 7.4 BTC $8,799It was 6:30 in the morning. My 14-year-old daughter, Jane, was in London on a school trip, and my older daughter, Sarina, was college in Colorado. My wife Carla and I were getting ready to leave for the airport to take a vacation in Tokyo.

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What if I do for this When our plane plowed into the ocean, Id want my daughters to be able to get the bitcoins. The coins visit the website had already nearly tripled in value since I bought themand I could imagine them being worth $50,000 one day. I took a pen and wrote on the newspaper:Jane, if anything happens, reveal this newspaper to Cory.