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Discussion Starter · #681 ·
1. So, at Block Zero - History 0000 what prevents me from saying I want to be worth 1M coins? What is the accountability? Who and/or what determines my worth in the system? How can that be verified or disputed and subsequently resolved?

2. For the sake of argument, say I move $20K USD to crypto. The institution where my known “legal tender” resided and the feds BOTH can see the transaction. Where is the anonymity?

3. Since anyone or entity can be part of the P2P network, what stops hackers or .gov from commandeering the P2P and gaining the 51% to make alterations to the block chain appear legit?
I'm also going to post this in the Bitcoin thread to keep things centralized and easily searched.

1. If you create a coin you can set whatever protocols you want. The market will decide if there's value in what you've built just like with anything else. Typically blockchains strive to be decentralized (not just in data but also in consensus mechanisms and distribution of coins) and open source (transparent and easily verified). Again, the market will decide long term if something does or does not have merit.

2. Anonymity isn't one of Bitcoin's value propositions, quite the opposite actually since it's a transparent public ledger. Despite the nonsense claims of people (many on here) that crypto is used primarily for black market activities, it hasn't been since probably 2015 and earlier. Bitcoin is easily tracked.

There are privacy coins (ZEC, XMR) and L2 networks (most of the ETH L2 rollups) that provide anonymity, but as you mentioned, onboarding large sums of money is difficult to do under the radar. Individuals can buy crypto for other individuals. I haven't looked into it in awhile but localbitcoins was a place to coordinate that.

3. For Bitcoin, an attack would need 51% of hashpower. State actors could of course do that, but it would be very difficult and it would need to be worth their time/money. In the event of an attack, it would also be fairly easy to move to another algorithm and to block attacking IPs from the network, but it would take a hard fork and consensus from miners and node operators.

For Proof of Stake (PoS) blockchains it's a bit more nuanced. Intelligently designed PoS blockchains like Ethereum have limits to daily onboarding and offboarding which means that even if a state attacker gained 51% of the circulating supply, it couldn't spin up enough validators to attack the network before it was noticed and steps to mitigate and attack are taken. With Ethereum's staking mechanism, there's a slashing penalty for attacks (or even just not being 100% operational) which means attacker's ETH is burnt and they're out whatever $$$ they spent to buy it.

Additionally, to accumulate 51% of the circulating supply of Ethereum would be very expensive now, let alone down the road, and as ETH is bought, the price would skyrocket, making it exponentially more expensive to attack.
 

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GrowingFromScratch.com
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Is anybody here currently using a smart contract for anything? I like the concept, but have no idea how to employ it.

Watching this 99Bitcoins YT on ETH, he dumbs down an explanation of a smart contract with an analogy of a renter and landlord. He said the smart contract knows if the renter paid the rent or not. If so, then the renter can access the rental, if not, the renter is locked out. He almost implied that the smart contract itself would control the physical lock on the rental. What he didn't explain is how that money gets from the renter to the landlord, or how and who is creating the smart contract. The smart contract is driven by the DAPP, which I assume is already parked somewhere on the ETH network. Regardless, I would assume both landlord and renter need to be somewhat tech savvy in order for a smart contract to be a viable payment option.



 

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For Bitcoin, an attack would need 51% of hashpower. State actors could of course do that, but it would be very difficult and it would need to be worth their time/money. In the event of an attack, it would also be fairly easy to move to another algorithm and to block attacking IPs from the network, but it would take a hard fork and consensus from miners and node operators.
It would also be super obvious to regular miners that this attack was happening after a half hour or so.

And such an attack is very limited in what it could accomplish. They could disrupt the network... In which case I'd simply use a different Crypto while the attack was ongoing. Or they could double-spend... Which would suck for whoever was doing business with said state-actor but leave myself unaffected. If anything this would erode confidence in the state-actor more than the coin itself.


Naturally, if such an attack resulted in a mass loss of confidence from users, then I'd be affected insofar as the value of my coins would decrease. But honestly an Elon Musk tweet could have the same effect...

Tldr: Not worried about a 51% attack.
 

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Discussion Starter · #684 ·
It would also be super obvious to regular miners that this attack was happening after a half hour or so.

And such an attack is very limited in what it could accomplish. They could disrupt the network... In which case I'd simply use a different Crypto while the attack was ongoing. Or they could double-spend... Which would suck for whoever was doing business with said state-actor but leave myself unaffected. If anything this would erode confidence in the state-actor more than the coin itself.


Naturally, if such an attack resulted in a mass loss of confidence from users, then I'd be affected insofar as the value of my coins would decrease. But honestly an Elon Musk tweet could have the same effect...

Tldr: Not worried about a 51% attack.
Agreed 100%. Great post!
 

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To gain popularity among miners and start making a profit, you need to have good computing power. Do not forget about the costs of maintaining and promoting the pool. This expenditure item occupies a large part of the budget. To stand out among competitors, you need to offer your clients something unique, which will not have analogs in the network. Creation of the best mining pool for ethereum consists of several stages: 1. Installing a miner - a unique program that is designed to mine cryptocurrency; 2. Finding information to connect to the pool - information about the pool server can be found on the pool website; Setting up the software for mining. 4; 4. Launching the miner. Mining cryptocurrencies through a pool is prevalent among miners, as solo mining has long gone out of fashion, in addition to mining through a pool.
 

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GrowingFromScratch.com
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Wow, ETH in the $3500 range. Time to add some more methinks
 

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The amount of ETH naysaying out there is growing. I have to say, they need to get this shift to POS in high gear.
 

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Reallocating my alt portfolio, moving heavily in to Loopring, followed by Matic. Sold all my LRC at $3.27 and moved it in to BTC a couple months ago, have been slowly reaccumulating as price has been dropping. So far I've reaccumulated my previous holdings plus 50% and still have a decent chunk of BTC left to swap as this downtrend continues. Considering swapping my chainlink, I'm not as convinced there's much profit to be made this year.
 

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Discussion Starter · #690 ·
The amount of ETH naysaying out there is growing. I have to say, they need to get this shift to POS in high gear.
Agreed. The Ethereum devs really ramped up their work earlier in 2021 when the miners started saber rattling and I'd have to think given that Tim has posted over the past six months that things are going well and progress is chugging forward. It's a difficult task. No down time, no mistakes, no ability to rollback problems, and a 400B network that would be devastated if problems arose.

 

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Reallocating my alt portfolio, moving heavily in to Loopring, followed by Matic. Sold all my LRC at $3.27 and moved it in to BTC a couple months ago, have been slowly reaccumulating as price has been dropping. So far I've reaccumulated my previous holdings plus 50% and still have a decent chunk of BTC left to swap as this downtrend continues. Considering swapping my chainlink, I'm not as convinced there's much profit to be made this year.
Was watching George from cryptosrus last night talking about projects that had heavy investments from venture capitalists (Polygon, solana, terra) and what that could mean short term. Those 3 mentioned all had enormous gains this year and is very possible that profits could be taken and further drop the price. Just mentioning that if you are thinking of going heavier into Polygon. Also if you do, staking MATIC on crypto . com gives good rates but also requires a stake in CRO. Right now I’m earning 10% on MATIC for a 3 month lockup, though it requires $400 CRO stake for 6 months. I think CRO will continue to do well so I am fine with it.
 

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GrowingFromScratch.com
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$3400 and rising. Apparently the elevator not only goes down, but up as well. Who knew?
 

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Discussion Starter · #694 ·
were you sweatin? Taking profits usually means more strength in the next uptrend. That target sell price for traders is higher now. But if profit taking is healthy.
I haven't sold any. Not planning on selling anything anytime soon. ~85% of my ETH is either locked in staking contracts or staking rewards so I'm not super liquid and not willing to sell anything sub 5k and really more targeting 10k even if that's a 2025 timeline (I think it's much sooner).

I'm a patient man, my wife and I have been very blessed, we don't need my crypto gains to live very comfortably so I can afford to have diamond hands and play the long game. I understand that many aren't in the same boat and understand why people would take a shorter time preference for profit taking.
 

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GrowingFromScratch.com
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LOL, no not sweating. I was being sarcastic. I bought considerably more ETH and BTC compared to my usual DCA comfort levels.
 

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I haven't sold any. Not planning on selling anything anytime soon. ~85% of my ETH is either locked in staking contracts or staking rewards so I'm not super liquid and not willing to sell anything sub 5k and really more targeting 10k even if that's a 2025 timeline (I think it's much sooner).

I'm a patient man, my wife and I have been very blessed, we don't need my crypto gains to live very comfortably so I can afford to have diamond hands and play the long game. I understand that many aren't in the same boat and understand why people would take a shorter time preference for profit taking.
I think 10k is in the cards for the next run up. Obviously it didn't happen by the end of the year like I thought, but it was never a matter of certainty. Looking at where eth was in Jan 2020 to Jan 2021 to now, it's pretty difficult to not be pleased. Even if it fell below 2k, that would be a paltry 100% gain in a year.

I can see 10k being a market bottom in 2025 for sure, certainly not the ATH. If Jan 2020 to 21 was a 5X and 21 to 22 a 2X, then a 2x estimate is the minimum. We're talking about the year when the merge happens too, if it goes well my monthly staking rewards will become very substantial. We'll see though, I don't know the future.
 

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GrowingFromScratch.com
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My understanding (or not) is that staking is locking up the holder’s ETH until the merge. Does all staking cease at that point? Or is there still staking opportunity after the merge and a need for securing the network post merge.
 

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My understanding (or not) is that staking is locking up the holder’s ETH until the merge. Does all staking cease at that point? Or is there still staking opportunity after the merge and a need for securing the network post merge.
The merge is the introduction of staking as the method of processing network transactions dropping mining completely. Staking will be the new mining and it's locked up to ensure there are enough validators to secure the network at the merge.
 
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