Lightning Network Explained: Building Payment Channels What is the Lightning Network? We try to make this crazy piece of Bitcoin scaling technology understandable for everybody. The first part is about the basic unit of Lightning, the Payment Channels. How are they built? Running a Node Edit on Github Introduction This document describes how one can set up their own Counterparty “Federated Node” system, on Linux, Windows or OS X. A Federated Node is a self-contained system that runs the some or all of the Counterparty software stack, via Docker. Each system operates as a Bitcoin and Counterparty “full node”. Using this toolset, one can generally get started running the Counterparty software much quicker and more easily than a manual installation of the various components.
SEC Demands $12 Million from GAW Miners for Bitcoin Ponzi Fraud Readers may recall with avid disgust the charades of one Josh Garza, former CEO of miner turned scam company GAW Miners, who recently plead guilty to massive fraud. Now, the SEC says they are not done with him and want his former company to pay $12 million in reimbursements and civil penalties. Get exclusive analysis of bitcoin and learn from our trading tutorials. Join Hacked.com for just $39 now. Strangely, this doesn’t effect Garza personally very much. The companies, which have no cash or assets between them, are certainly not worth $12 million.
Creating a bitcoin paper wallet for cold storage Using Electrum and other Bitcoin wallets is pretty safe (assuming your computer isn't hacked). But if you're serious about security or want to keep some funds portable, you can use a "paper wallet." The security benefit here is that your private key isn't connected to the internet, so no hacker can get to it. When a private key is stored offline (either on paper or in a non-connected computer), it's considered "cold storage." Weipoint – Weipoint – Medium Ethereum and other technologies have sparked a wave of decentralized applications (Dapps). These apps run directly on the blockchain, making them globally accessible and eliminating the need for trusted parties. No longer do you need a bank to hold your money or Wall St to trade stocks. This enables Dapps to solve many problems which were previously impossible. A few examples are: Augur: A worldwide prediction market, which could forecast the probability of any eventGolem: A network to harness the power of idle computers to create the world’s largest supercomputeruPort: Provides everyone a sovereign digital identity
Why bitcoin prices are rising When hackers recently threatened to release an unnamed Disney film unless they received a payoff, they asked for the ransom in bitcoin. The incident highlights the cryptocurrency's dual nature these days as an increasingly prized and accepted financial asset but one that still retains its outlaw allure. Bitcoin prices are topping $2,000, more than doubling in value this year, as political instability in many parts of the world cause a spike in demand that some fans say could one day upend the world's banking system. As a result of the latest price surge, the value of the digital currency's total circulation has hit nearly $35 billion. While that may sound like a lot, it's not in the grand scheme of other markets. That's less than the market cap of a single good-size S&P 500 company like Ford's (F) $45 billion market cap or Tesla's (TSLA) $50 billion.
Tulips, Myths, and Cryptocurrencies – Stratechery by Ben Thompson Everyone knows about the Tulip Bubble, first documented by Charles Mackay in 1841 in his book Extraordinary Popular Delusions and the Madness of Crowds: In 1634, the rage among the Dutch to possess [tulips] was so great that the ordinary industry of the country was neglected, and the population, even to its lowest dregs, embarked in the tulip trade. As the mania increased, prices augmented, until, in the year 1635, many persons were known to invest a fortune of 100,000 florins in the purchase of forty roots. It then became necessary to sell them by their weight in perits, a small weight less than a grain.
Op Ed: Bitcoin Miners Consume A Reasonable Amount of Energy We have all seen photos of large data centers hosting mining hardware built from specialized ASICs designed to solve the Bitcoin proof-of-work (a double SHA256 hash.) These data centers tend to be located in places with inexpensive electricity, often where hydroelectricity is plentiful, like Washington State in the U.S. But how much electricity is consumed by these miners? Knowing this helps us to better understand the economics and financial opportunities of Bitcoin mining.