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Month: October 2016

Is Bitcoin Cloud Mining Actually Profitable?

Many people wished they had not missed the Bitcoin mining bus before the great Bitcoin boom started back in 2013. Back then you could mine Bitcoins pretty easily at home and make a very nice profit on the exchange rate. However since then, the mining difficulty has increased immensely and today it is almost impossible to mine Bitcoin profitably at home with your own hardware. The only exception is if you have very low electricity costs and manage to mine efficiently for at least 6 months without any major changes in this competitive landscape. And that’s one of the...

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Sidechains Explained

Sidechains are an extremely important innovation for cryptocurrency. They also extend and incentivize the cryptocurrency mining opportunities and industry. [embedded content] TRANSCRIPT Sidechains as an idea have existed and had been floating around for quite some time now, the bases is to extend the decentralization of trust into other sectors and to other digital assets. However, while this all sounds great it’s a perfect example of good in theory but not so much in practice. Nevertheless, this hasn’t stopped people from trying with groups such as Blockstream exploring the idea and our friends over at Rootstock co-creating a Sidechain which is allowing Litecoin and Bitcoin to execute smart contracts and all without changing the core software of the original currency. A Sidechain, in simplest terms, is just a separate blockchain but is attached to the parent through the use of a two-way peg which allows for assets to be interchangeable and moved across the chain at a fixed deterministic exchange rate. This two-way peg works by utilizing simple payment verification or SPV as it’s otherwise known. To show and prove ownership of the assets on the parent chain. Using Rootstock as an example, in order to transfer assets from one chain to the other a user on the parent first has to send their coins to a special output address where they will consequently become locked and un-spendable. Once...

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