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danj
there is no spoon
Registered: Mar 2005
Posts: 18374 - Threads: 785
Location: Omnipresent
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Quote:
| Mark. wrote on 31-10-2013 03:32 PM
Quote:
| Pacman wrote on 31-10-2013 10:11 AM
It's useful as a currency that isn't controlled by any one agency, so it'll continue to be used online for shifty stuff. It's usefulness for other stuff is limited because:
It's too volatile to be useful for Serious Business™. We already have a de facto single currency, the US dollar. But no country is going to align it's own currency to Bitcoin in times of trouble, because it's too flaky.
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It's use for shifty stuff does give it a bad reputation, which is a shame as I think it does have potential.
Is there a chance the currency could stablise?
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No, it's not tied to any legitimate tangible commodity the way that other currencies are.
Saying that though, Sterling's economical strength comes from a mostly service based economic contributor nowadays, however it still has primary and secondary roots to tangible assets (Oil from BP, Gas from NS) etc, highly skilled engineering from RR Trent, Airbus Industrie et al.
Bitcoin, has none of that, just a fancy algorithm to mask its users and prevent easy generation of them, which means it will always be used for 'shady purposes'.
Bitcoin's will continue to increase with an inflated valuation because of its black market inflation until a) regulation is enforced or b) alternative online currencies come about to compete with it, creating a digital currency FX market.
(¬_/)
(='.'=)
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 05-11-2013 09:24 AM |
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danj
there is no spoon
Registered: Mar 2005
Posts: 18374 - Threads: 785
Location: Omnipresent
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[Edited by danj on 05-11-2013 10:14 AM] Quote:
| ORBS wrote on 05-11-2013 09:35 AM
the picture is really cool !
but I got lost in the mining bit too - does someone understand how the transaction block, the hash value & the nonce are exactly related?
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An address is the original string the keys are generated from.
A nonce is just a salt string (additional input value) to add extra security to each generated hash - See http://en.wikipedia.org/wiki/Salt_(cryptography)
Each new unique hash created is created with a random salt string everytime, but from the previous hash value.
The cryptographic algorithm can be reversed to tell what every value was in the history of how the current value was created, but only if you know the algorithm, which is yet to be broken.
Mining coins works by guessing correct values for coins (kind of like guessing a fixed set of 6 lottery numbers you don't know, with enough computing power you'll get it eventually but with bitcoin the possibilities are an infinitely larger pool of possible numbers and once you've guessed one it's only one valid coin, so you move on, you 'mine').
(¬_/)
(='.'=)
(")_(")
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| 05-11-2013 10:13 AM |
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