2021/09/28

Crypto News... Cryptocurrency Mining and Energy...


How much energy does it consume to mine cryptocurrencies at home?Cryptocurrencies have been in the spotlight this past year due to their skyrocketing growth in value.

Bitcoin and Ethereum are the two most popular cryptocurrencies in the world and it is no wonder that people like you are interested in the world of mining to generate profitability.


If you want to start mining cryptocurrencies you need a computer with enough power and know how much energy it will consume to make the investment profitable.

How much power does a mining computer consume?

Using a wall meter is the fastest and most efficient way to know the power consumption of your computer.

For example: if you have a computer with these specifications it will consume a total of approximately 0.2 - 0.3 kWh.

Processor: Ryzen 5 3600X 3.6GHz
Graphics card: RTX 3070 12GB
Ram: 32GB DDR4
Power supply: 650W
Motherboard: Gigabyte B450 AORUS Pro

The above configuration is the most common for mining Ethereum or other cryptocurrencies, except bitcoin unless you have hundreds of computers like that.

The consumption will depend on the characteristics of your computer. Note that it can vary between 0.1 and 0.6 kWh.

If you want to know the price per kWh in Spain check this page.
If you want to know the consumption and profitability of your graphics card you can go to this website.

On this website you will also find:

A calculator to know the consumption and mining power of ASICs.
A ranking of the best ASIC models according to their profitability, power, hash rate, and cost.

Ranking of the best GPUs.

But is it really profitable to mine cryptocurrencies at home?

Quick answer: Yes, except Bitcoin. This is not profitable if you want to do it from home unless you have hundreds or thousands of powerful computers to compete against super mining farms.

Other cryptocurrencies can be a good option.

Extensive answer: It depends on the cryptocurrency.

Bitcoin (BTC): The world's most famous cryptocurrency is not profitable due to high competition and mining farms spread all over the world. The more people decide to mine bitcoin the more complicated the algorithm becomes, so more and more computational resources are needed to obtain a hash.

1) Algorithm: Proof of Work (PoW)
2) Reward: 6.25 BTC


Ethereum (ETH): The second cryptocurrency with the largest market capitalization. To this day it is still a good option for mining but you need a computer with a minimum of power.

1) Algorithm: Proof of work.
2) Reward: 2 ETH


Monero (XMR): This cryptocurrency has a high level of privacy and decentralization. The advantage is that you can use it to mine both CPU and GPU.

1) Algorithm: Proof of Work
2) Reward: 2.47 XMR


Litecoin (LTC): Litecoin is an option for mining because it is a fairly stable coin, (although in the crypto world this is no guarantee) and does not require a large investment to make a profit.

1) Algorithm: Proof of Work
2) Reward: 12.5 LTC


Dogecoin (DOGE): This cryptocurrency was born as a meme but has currently become quite popular. Elon Musk and other influencers have promoted this coin with the goal of making it reach 1 USD in value.

1) Algorithm: Proof of Work
2) Reward: 10.000 DOGE


Now. If what you want is to get bitcoin, one option is to mine the aforementioned cryptocurrencies and then exchange them for bitcoin. This way you can mine more affordable cryptos with cheaper hardware and get bitcoin just the same.

Use renewables to save energy.

If you have a roof or a balcony where the sun shines for long periods or it is very windy you can choose to put solar panels or wind turbines.

These options are expensive but in the long run, you can save electricity and run your mining computers on clean energy.


Conclusion:

Energy consumption for mining cryptocurrencies ranges from 0.2 to 0.6 kWh depending on hardware power.


Bitcoin is not a profitable coin but there are alternatives like Ethereum, Monero, Litecoin, and Dogecoin that are profitable and with less hardware cost.

If what you want is to get bitcoin, you can always mine the cryptos mentioned above and exchange them for bitcoin.

Alejandro O. Asharabed Trucido

+54911 5665 6060
Buenos Aires, September 28, 2021

Crypto News... Bitcoin, Cardano, Crypto Mining, FTX, etc...

BITCOIN OVER BANKS? Nearly a third of Salvadorans, or about 2 million people, are actively using the state-issued Chivo bitcoin wallet, according to President Nayib Bukele. If the figure is accurate, more people are using cryptocurrencies than any particular bank in El Salvador less than a month after BTC became legal tender there. 

QUICK CONSEQUENCE: Authorities in China's Inner Mongolia province seized 10,100 cryptocurrency platforms from a government-operated technology park, according to local media. This comes days after senior government officials renewed a crackdown on cryptocurrency trading and mining. Separately, Huobi Global announced Sunday that it would stop serving existing users in China by the end of the year. 

GO GREEN: Singapore startup Cyberdyne Tech Exchange sold its first tranche of carbon neutrality tokens backed by Chinese carbon credits, according to a Monday press release. These carbon neutrality tokens (CNTs) correspond to 5,000 metric tons of carbon credits generated by a wind project in Zhangjiakou. Separately, sustainable bitcoin mining company CleanSpark has moved all of its hashrate to the North American mining pool of Foundry Digital. (USA Pool of Foundry is a subsidiary of CoinDesk parent Digital Currency Group).

SWAPPING PLACES? Derivatives exchange FTX has officially moved its headquarters from Hong Kong to the Bahamas, amid increasing regulatory scrutiny around the world. Binance, under fire from financial watchdogs, is restricting use in Singapore. Valar Ventures, Third Prime and Castle Island led a $15 million raise in the Africa-focused exchange Yellow Card. Finally, decentralized exchanges (DEXs) are seeing growing volumes following China's cryptocurrency crackdown, with a value build in their tokens.

AT CARDANO: Emurgo, Cardano's venture and trading arm, is investing $100 million to boost DeFi, NFTs and blockchain education efforts for the world's fourth-largest blockchain. Meanwhile, Cardano founder Charles Hoskinson has donated $2 20 million to Carnegie Mellon University to establish the Hoskinson Center for Formal Mathematics. Finally, Dish Network is looking to use Cardano to provide digital identity services in a new partnership with Input Output, Cardano's parent company.

MINING ISSUES: U.S. Senators Maggie Hassan (D-N. H.) and Joni Ernst (R-Iowa) have proposed legislation that would require the Treasury Department and other agencies to track how cryptocurrency has spread around the world. This would be, in part, to" identify vulnerabilities "crypto introduces to" the global microelectronic supply chain. "Meanwhile, e-commerce giant Alibaba will stop selling specialized mining equipment on Oct. 8, as at least 18 more crypto platforms and companies exit China following a nationwide crypto ban.

GUILTY AGREEMENT: Virgil Griffith, the controversial Ethereum developer accused of violating U.S. sanctions law for giving a presentation in North Korea in 2019, has pleaded guilty in a deal with federal prosecutors. He pleaded guilty to one count of conspiracy to violate the International Emergency Economic Powers Act on Monday in a New York court, and could serve between 63 and 78 months in prison after sentencing. 

NODWORTHY: A roundup of new tools and announcements pushing cryptocurrencies to new frontiers:

Social token builder Roll has raised 110 million in Series A funds led by IOSG Ventures. CEO Bradley Miles said Roll wants to be the " Stripe for social tokens."”

Fireblocks has proposed taking a first step towards "institutional DeFi" with an Arc tie-up Aave.

Hedgehog Markets, a blockchain-based prediction market platform, is testing "loss-free markets," which combine information markets, DeFi, stablecoins and "play-to-win"games.

Digital asset securities firm Securitize has launched a secondary market in hopes of attracting minority investors looking to trade tokenized shares of private companies.

Crypto Connect, founded by Anderson Kill attorney Hailey Lennon and 25 other influential women in blockchain, is being launched in 12 U.S. cities to provide a professional network for people in the crypto industry.

Coinbase will allow direct deposit of paychecks, taking a step further on the publicly traded exchange towards the provision of general banking services.be


Alejandro O. Asharabed Trucido
+54911 5665 6060
Buenos Aires, September 28, 2021

2021/09/24

The Impossible Block, Hashes 21E8...

One of the most striking myths for many in the community is related to the impossible blocks of Bitcoin. These are a series of blocks that keep certain details that make them unique and even seem impossible to create without some kind of unexplainable external intervention.

In the world of Bitcoin and cryptocurrencies there are many myths and legends, starting with the creator Satoshi Nakamoto (CIA) of whom absolutely nothing is known. But one of the strangest myths in the community, has to do with the” impossible blocks of Bitcoin", and behind them there is a huge amount of theories and myths that give much to talk about.

Some of these theories are very logical, but others are somewhat conspiranoic. However, they all seek to explain something that is certainly disconcerting. How is it possible that these blocks exist? Why are certain patterns repeated on certain hashes at more or less regular rates? And that's why we've created this new article, one that will help you understand the mystery behind the “impossible Bitcoin blocks.”

What are impossible blocks in Bitcoin?

Bitcoin impossible blocks, according to many bitcoiners, are a series of blocks whose Block ID or block hashes were generated in somewhat unknown forms or that share a more or less regular pattern, in what would be a very unlikely series of events.

The first case, for example, is currently applicable only to the genesis block of Bitcoin. The generation of this block is still a mystery to the community. While the latter, should not pose any problem. That is, it is a random hash and that a string appears as a pattern in several different blocks, should not surprise us according to the laws of probability.

However, the latter does surprise by one very specific thing. Most of these blocks share the chain "21E8". This is such an unlikely chain to generate, that the appearance of it should be a single event a year.

This is because these “21E8” hashes are hard to find, especially because the hexadecimal construction (the way hashes are generated) of that string is complex and requires large amounts of computational power. Of course, the Bitcoin network has a very high power, in fact, it is the most powerful supercomputer on the planet leaving by far the 500 most powerful supercomputers on the planet. But still, it is a rather unlikely event, and that it is repeated on a regular basis, makes it even less likely.

So we have basically a hash series that theoretically and probabilistically cannot exist, and yet they do exist. Quite striking the truth, so striking that the community has turned to get a meaning to them. However, the mystery of impossible blocks is just beginning. And the story of them was initiated by Satoshi Nakamoto himself, and we will examine that next.

The first impossible block: the Bitcoin genesis block.

If you ask anyone who knows the crypto world about the genesis block of Bitcoin, they will tell you that the block is quite an unsolved enigma. And you are right in your answer, because Bitcoin's genesis block is an impossible block.

In fact, the truth is that Bitcoin's genesis block is a " manipulated block." Many believe that Satoshi Nakamoto, being the only miner on the network, was able to manipulate Bitcoin software to mine this block and create it at will. Daniel Larimer's research on Bitcointalk tells us that; Nakamoto certainly manipulated the genesis block to create it in a special way. The question is, what did you do to make it so special? No one knows, not even Craig Wright who claims to be Satoshi, and who proves to us that's not what he says.

The problem is that generating that block required a very large computational power due to the difficulty of active mining at that time. The difficulty value of the block is so great that a powerful computer of the time should take at least 6 days to achieve it with a 17% chance. A Bitcointalk user performed these calculations on a 2008 AMD Phenom II X4 CPU. Your conclusion? Generating that block using that computer would have taken 58 days.

However, Nakamoto took only 4 minutes to pamper him, with quite small computational power, as shown by the srciptSig of that block. Did Nakamoto have a more powerful computer? Was it luck? We don't know exactly. The truth is that everything seems to indicate that if he had a very powerful computer, or simply, he was too lucky.

But the mystery gets bigger. Block 1 came out 6 days later, with a similar difficulty. Immediately after the block production accelerated maintaining the same level of difficulty. Did Nakamoto have a personal mining pool? We won't know either, but there are indications that the initial Bitcoin network was very limited in its genesis, in fact, the mining difficulty did not change in a long period of time, so only Satoshi Nakamoto was the one who mined on the network. Also, the first features for mining pools came much later, because the initial Bitcoin software didn't have that possibility.

Hence the mystery of the genesis block is even greater, and we probably never know how the genesis block was actually generated. But on the other hand, this opens the doors to the different theories of the impossible blocks, especially the 21E8 blocks.

The mystery of blocks with 21E8 hash

The blocks 21E8 have a very peculiar characteristics and to see them we show you one of these hashes: 000000000000000021e800c1e8df51b22c1588e5a624bea17e9faa34b2dc4a

As you can see, the string "21e8 “is located right after the string” 0" of the hash. This chain of 0 indicates indirectly the level of difficulty of mining. As more “0” is added at the beginning of the hash, Bitcoin mining is more difficult and complex. So getting that string (21E8) to always appear right after these " 0s " and at regular rhythms is a pretty unlikely event.


However, it is precisely the unlikely, what has happened. The previous hash, for example, belongs to block 528249, dated 6/19/18. But before them, there were the blocks 26284, 83434, 187323, 259695, 304822, 349158, 437039, 475118, according to data given by Emin Gün Sirer.
If we look at each of these blocks, they are separated by times that go on average to 393 days. A pattern that is not repeated with other chains. However, as Emin Gün Sirer has said very clearly, the generation of these chains is possible and he has proved it mathematically. The fact that they are repeated periodically responds to the fact that the power of Bitcoin and its network is enormous, humanity has never generated a machine as powerful as this and there are the fruits, making the almost impossible possible.

However, there are people who like mystery, and for that reason an avalanche of additional theories have been created, of which we go on to name a few.

Some other theories generated about impossible blocks
Bitcoin is a self-generated god

Bitcoin is the uniqueness of artificial intelligence in a world ruled by machines that traveled back in time to our days and created the blockchain to allow men to give a lot of computational power for their own creation, Bitcoin is a self-generated god.

This is one of the theories being put forward about the fact of how Bitcoin has worked since its inception. And it is that many people think that Bitcoin is a technology brought from the future by Satoshi Nakamoto, and that its disappearance responds to that it was captured for using an illegal temporary portal.

A quite creative hypothesis but totally out of this theory, because the truth is that all the bases of Bitcoin have been created during the last 100 years, so this theory falls by the tremendous historical weight and evidence against it. Another thing is that “Bitcoin is a self-generated god, " which has been jokingly taken up in the community.

Bitcoin has applications beyond the imagined
Another very common theory to explain this kind of thing is that Bitcoin, its enormous computational power, the generation of hashes for everything, has a use beyond what we can see, and that Satoshi Nakamoto is collecting all this information to achieve his ultimate goal, which is unknown.

The idea is also fueled by something that many regularly ask themselves-So much computing power and energy consumption just to generate hashes whose only function is to keep a cryptocurrency running? Certainly to many it seems a waste of computing power and energy. Although it is also true that, Bitcoin as a network and form of money is worth that and much more.

Despite that, many people have used this theory and have been used to generate variations, some more striking than others, and of which we will comment some:

Bitcoin and its network is actually the basis of building a computational network to artificially increase the intelligence of humans. The question is how would that be done? No one knows the answer and it's actually unlikely to be true.

Bitcoin is the basis for building a much broader knowledge and economy network. For example, the one devised by Ted Nelson's Xanadu Project. This man is a visionary to whom we owe the creation of the hypertext Internet as we know it now. For those who do not know the Xanadu Project, it was a network of information and exchange project very similar to the Internet, but that by far was much better and above all, it was decentralized. The project was born in 1960, and even today, Ted continues to develop his idea. This idea is quite possible, because Bitcoin could certainly be the basis for building such a network.


The appearance of the hashes "21E8" has a cosmic meaning with which it seeks to unveil the Theory of the Whole of Physics. Perhaps the craziest theory at this point, and is sustained, that “21” refers to Bitcoin's emission limit. While " E8 " refers to the Lie Group, an algebraic set with which symmetries are studied and which is the origin of one of the Theories of the Whole with which they seek to create a single equation that explains everything in the Universe.

Finding:
As you see the idea of “impossible Bitcoin blocks", it is not as realistic as many try to make it seem. The appearance of patterns such as “21E8", does not mean that there is an invisible hand manipulating Bitcoin from the shadows and violating all the laws of the physical world. Or if ... ?

On the other hand, the genesis block generation responds more to a riddle left by Satoshi Nakamoto. A riddle that maybe can give us an answer about who he really is, and he's there waiting for someone to figure it out. Or maybe the riddle doesn't say who it is, but if you access Nakamoto's private keys and they could make you own a fortune ... set to dream…

In the world of perhaps, many things can be, but the truth is that logically, the impossible blocks of Bitcoin are only the breeding ground of legends, like many others that have been generated in the community and are part of its rich history and culture.

Alejandro O. Asharabed Trucido

+54911 5665 6060
Buenos Aires, September 24, 2021


What Does DeFi Mean and How Does It Affect the World of Cryptocurrencies?

1) Introduction

The term DeFi or Decentralized Finance is the evolution of the well-known FinTech that were born in the twentieth century. Its objective is to offer a whole range of services built on a decentralized infrastructure. One that allows the user to interact with the platform directly, leaving the intermediaries behind.

Something that has finally been possible thanks to the emergence of Blockchain technology. This is due to its ability to generate self-sustaining ecosystems without the need for a central entity to regulate them. All while maintaining system security, privacy and trust.

2) The birth of DeFi

The birth of DeFi as we know it started on the Ethereum blockchain. Ethereum's ability to offer flexible smart contracts was what made this step possible. By 2018, Ethereum had already active one 15 projects dedicated to DeFi. Mainly projects dedicated to liquidity markets, lending systems and Decentralized Exchanges (DEX).

Most of them just moved their traditional counterpart to the world of Smart Contracts and blockchain. But the really revolutionary point in this experience was the fact that it was totally decentralized. Without intermediaries, without annoying paperwork, fast and secure, it was the birth of a new era for finance.

Since then, the growth of DeFi in the world has been growing more and more. But not only that, many specialists agree that it will become an important part of the world economy and finance.

3) Operation of DeFi platforms

The operation of DeFi is possible thanks to blockchain technology and one of the tools derived from it, smart contracts. The concept of smart contracts was created by cypherpunk Nick Szabo in 1994. Szabo conceptualized them as an autonomous program capable of executing a series of instructions or clauses according to whether a series of instructions had been complied with. It was the equivalent of a legal contract but brought to the computer world and enhanced with the ability to be autonomous and completely anti-cheating.

Nick Szabo's vision was ahead of its time. He had to wait until the appearance of Ethereum when he was finally able to see a smart contract working. It wasn't perfect, but it was enough to start building new things. That was how Dapps or Decentralized Applications were born, programs that ran directly on the Ethereum blockchain and with which we could interact using tokens and a browser. A second advance that finally opened the doors for the construction of the DeFi.

Smart contracts, the building blocks of DeFi

The functioning of any DeFi platform is precisely the union of these two creations. A smart contract (or a series of them) that has the ability to handle money autonomously and a Dapp that allows us to interact with that smart contract in a simple way. All this running on the blockchain, where each action is recorded permanently and inalterable.

All this was realized in 2016 with the creation of Ethereum's The DAO. This was an Autonomous Decentralized Organization or DAO, whose function was to allow its participants to exchange their money for different projects through proposals. An action that was possible only with the vote of the majority of the participants accepting this proposal. The DAO quickly transformed into one of Ethereum's largest projects. But a security problem drove the project to its worst, following the theft of $ 50 million in ethers.

Despite the attack and the known risks, the community continued to develop the concept of DeFi. With the ICO boom in 2017 many DeFi projects received funding to achieve their plans. This is how the world's first DeFi platforms were born, many of which are still working today.

4) DeFi platforms today

Currently there are a wide variety of active DeFi platforms, many of them were born in the ICO boom of 2017. Each and every one of them has its pros and cons, and most run on the Ethereum blockchain. All this has made Ethereum stand as the most important blockchain for the DeFi movement.

But let's know some of these DeFi platforms and that they offer us:

MakerDAO

MakerDAO is a well-known DAO that runs on Ethereum, with the purpose of creating a DeFi ecosystem powered by its token Maker and its dollar-anchored stablecoin, the DAI. The MakerDAO system allows the value of the token Maker to stabilize the value of DAI through a dynamic system of Secured Debt Positions (CDP), autonomous feedback mechanisms and duly incentivized external actors.

This way, users can leverage their Ethereum assets to generate DAI on the MakerDAO platform. Once generated, the DAI coin can be used in the same way as any other cryptocurrency. So you can protect money or participate in the extensive system of Ethereum Dapps that accept DAI as a means of payment.

For example, it is possible to access a Dapps of decentralized loans on Ethereum and pay with DAI an equivalent amount in dollars in a matter of a few minutes. In addition, there are other platforms that offer the payment of interest for saving money using DAI, as if it were a traditional bank. And even, we can use our DAI on loan platforms, to offer peer-to-peer (P2P) loans for which we will earn a certain interest.

AAVE

AAVE (formerly ETHLend) is a DeFi platform dedicated to decentralized lending. The platform is primarily focused on offering users of Ethereum and several major tokens running on this blockchain, a fast and secure platform to access loans. To do this, AAVE has a large number of features ranging from exchange, repayment, redemption, deposit, payments, tokenization (with issuance and burning of tokens own platform).

0x

Another widely known DeFi platform is 0x. This platform runs on Ethereum and is focused on building decentralized exchanges (DEX). With this, 0x seeks to change the strangest paradox in the crypto world: its centralized exchanges. Exchange platforms such as Binance, Bitfinex or Poloniex are centralized platforms, where their owners can make the decisions they want and manipulate such exchanges.

This situation clashes head on with the decentralization promoted by the blockchain. That's where 0x wants to be a factor of change. To achieve this, 0x has created a series of smart contracts that we can use to create our own secure decentralized exchanges.

Augur

Augur is a DeFi platform focused on building an oracle to conduct prediction markets. The name of the platform comes from a Roman word used to identify priests with gifts of divination.

The goal of Augur is to offer its users the opportunity to develop markets in which other users can bet. It uses the "Wisdom of the Crowd" of the platform's predictors and winners to create near-accurate real-time predictive data. To achieve this, Augur uses the Ethereum blockchain and all its activities are stored in the history of its REP token.

As you can see, DeFi is not just money management, it is much more than that. The diversity of uses of DeFi is immense and largely unexplored. The platforms listed here are just some of the existing platforms.

5) Importance of DeFi in the blockchain ecosystem

defis are increasingly becoming a major player in the blockchain ecosystem. Beyond activities like HOLD or staking, DeFi allows cryptocurrency users to create new ways to produce money and increase their investments. In addition, the constant increase in cryptocurrency users and the enormous economic potential of blockchain such as Bitcoin, does nothing more than improve the future estimates of this sector. Especially when it is known that there is more than $ 1 billion in liquidity in these markets.

But beyond the blockchain ecosystem and its users, defis can open the doors for traditional investors to finally be tempted to enter the ecosystem. The injection of liquidity by these investors would dramatically increase the liquidity of crypto markets and create a whole bonanza of services that underpinned the presence of blockchain in the world.

Given this scenario, it is understandable the vital role that DeFi have in the blockchain ecosystem, a role that could lead to the worldwide massification of this technology and took us deeper and deeper into the economic and financial revolution that Satoshi Nakamoto sought with the creation of Bitcoin.

Alejandro O. Asharabed Trucido

+54911 5665 6060
Buenos Aires, September 24, 2021


2021/09/22

Blockchain: A disruptive technology with the power to revolutionize financial services...

Blockchain is a technology you need to know about.

Because of its immense potential, more than 70 of the world's largest financial institutions (including Barclays, JP Morgan, Royal Bank of Scotland, State Street and UBS, to name a few) are part of a consortium researching and developing blockchain technology.

In addition, PwC's Global Blockchain Team has identified more than 700 startups in the space and blockchain technology is seen by some as the fifth paradigm of computing after the mainframe, the personal computer, the Internet and ultimately the mobile and social networking revolution.

Still not familiar with blockchain? You are not alone. In fact, according to a 2016 survey of top-level executives at some of the world's leading financial institutions, less than 20% of respondents described themselves as "very familiar" or "extremely familiar" with the technology. That said, 56% of respondents recognize its importance.

Why this lack of familiarity with a technology that has the potential to revolutionize commerce as we know it? We believe this is due, in part, to the fact that many industries are still focusing their efforts on leveraging the Internet and mobile technology to enhance customer experiences. 

The financial services and insurance industries in particular are catching up in this space. With so much attention focused on front-office platforms, little attention has been paid to archaic back-office and mid-office systems, where blockchain technology is most applicable.

Another contributing factor to the lack of awareness in this space may be that people have difficulty understanding what amounts to a paradigm shift in the way humans have always done business.

At Equisoft, we believe that blockchain technology and its potential implications for the financial services and insurance sectors deserve special attention. As such, we have formed an internal blockchain working group to better understand the technology and how our customers can leverage it.

The group's first initiative was the development of the basic introduction to the topic contained in the following pages. We trust that our overview provides you with some clarity and food for thought regarding this potentially revolutionary technology.

Alejandro O. Asharabed Trucido

+54911 5665 6060
Buenos Aires, September 22, 2021