Tuesday, June 15, 2021

Microbitcoin [uBTC]: Defined in CryptoCurrency

Microbitcoin [uBTC]:
Defined in CryptoCurrency

The mission of UnitedBitcion is to find a purpose for lost Bitcoin and inactive wallets and create a stable cryptocurrency system through an association of joint credit and smart contracts.

Microbitcoin, also known as the abbreviation uBTC, is one millionth of a bitcoin or 0.000001 of a bitcoin.

uBTC=microbitcoin=1 millionth of a bitcoin=0.000001BTC

mBTC is equivalent to a Millibitcion which equates to 1 thousandth of a Bitcoin and numerically represented as 0.001BTC.
Similarly, uBTC is equivalent to a microbitcoin which equates to 1 millionth of a Bitcoin and numerically represented as 0.000001BTC.

Megabitcoin: Defined in CryptoCurrency

The Case for Using mBTC Over BTC Denominations mBTC:

As bitcoin’s price has gained quite a bit of value over the past few months, many bitcoin proponents have been asking the community to start thinking about using mBTC denominations rather than using decimal points. People proposing this idea believe it’s the right time to start referring to bitcoin percentages below one bitcoin in this fashion, to make calculations easier and to attract new users who think one bitcoin is too expensive.

Using mBTC Denominations:

The Case for Using mBTC Over BTC Denominations The fiat value of bitcoin is getting seemingly close to the US$2000 range as the price per BTC hit an all-time high on May 11 reaching $1890 across global exchanges. Since bitcoin’s value is growing larger a bunch of cryptocurrency enthusiasts have proposed people start using mBTC denominations.

One mBTC, otherwise known as a millibitcoin, is one thousandth of a whole bitcoin, or 0.001BTC. At current market prices, one mBTC is worth $1.85, and people have been bolstering the mBTC idea well before one mBTC was a dollar.

The reason people would like to use the mBTC unit measurements instead is because it’s easier for humans to innumerate and communicate smaller portions of bitcoin.

Furthermore, some people just learning about bitcoin sometimes believe they have to purchase a whole coin, which is not the case as anyone can purchase bitcoins in fractions.

So bitcoin proponents believe using units of mBTC to describe smaller portions would allow new users to better conceptualize that they can buy ten dollars worth or 5 mBTC.

There are a few wallet services and business that use the mBTC unit denomination within their application’s interface. Wallets that use mBTC include Electrum, Blockchain, and Mycelium.

Satoshis & Bits:

Another terminology that measures smaller portions of bitcoin in units is called a “Satoshi”, named after Bitcoin’s creator. A Satoshi is the smallest fraction of bitcoin that can be recorded on the blockchain and equals one hundred-millionths of a whole bitcoin (0.00000001 BTC).

The name caught on around 2010 after a lot of discussion concerning the topic came up in forums. Sometimes traders refer to one Satoshi as a “Sat” which is just an abbreviation. A “bit” is another terminology used to describe a millionth of a bitcoin.

The Case for Using mBTC Over BTC Denominations Using Satoshis and bits as a language to discuss smaller bitcoin denominations is more widely used than mBTC. A few symbols have been created to represent a Satoshi measurement, but nothing has gained widespread adoption.

Would it be Easier to Explain to New Users(?):

The Case for Using mBTC Over BTC Denominations Throughout the past few weeks, the topic of changing the denomination language has come up in forums a lot more than usual. On May 11, one bitcoin proponent describes why people should think about mBTC units, saying that it would be far easier to communicate to new users.

“Many new people that ask to me about bitcoins are “scared” by the fact that to buy a bitcoin you need several thousand of euros,” explains the post.

To buy 0.05 of “something” sounds weird and little. So I think the community would greatly benefit if it switches to mBTC in exchanges and wallets. Also for shopping it would be easier to think that you are paying for a beer that costs three mBTC and not 0.003 BTC.

Others believe things are just fine the way it is and it would be too difficult for the community and industry to adopt this language. Furthermore, some believe wallets companies, exchanges, and bitcoin-based businesses should decide to use whatever they prefer.

Moreover, due to the rise of miner fees, some say the proposal of mBTC units is futile as many smaller denominations of bitcoin held in wallets can’t be used and are essentially unspendable addresses.

For now changing the language of bitcoin units probably won’t happen very quickly but there are those that believe the cryptocurrency environment is still young and starting this trend now would be helpful for communication.

What do you think about promoting the use of mBTC for smaller bitcoin denominations? Let is know in the comments below.

Merkle Tree: Defined in CryptoCurrency

Merkle Tree:

Defined in CryptoCurrency

Merkle Tree Explained

What is a Merkle Tree(?):

A Merkle tree is a data structure that is used in computer science applications. In bitcoin and other cryptocurrencies, Merkle trees serve to encode blockchain data more efficiently and securely.

Breaking Down Merkle Tree:

In bitcoin's blockchain, a block of transactions is run through an algorithm to generate a hash, which is a string of numbers and letters that can be used to verify that a given set of data is the same as the original set of transactions, but not to obtain the original set of transactions. Bitcoin's software does not run the entire block of transaction data – representing 10 minutes' worth of transactions on average – through the hash function at one time, however. Rather each transaction is hashed, then each pair of transactions is concatenated and hashed together, and so on until there is one hash for the entire block. (If there is an odd number of transactions, one transaction is doubled and its hash is concatenated with itself.)

Visualized, this structure resembles a tree. In the diagram below, "T" designates a transaction, "H" a hash. Note that the image is highly simplified; an average block contains over 500 transactions, not eight.

Merkle Tree:

The hashes on the bottom row are referred to as "leaves," the intermediate hashes as "branches," and the hash at the top as the "root." The Merkle root of a given block is stored in the header: for example, the Merkle root of block #482819 is e045b18e7a3d708d686717b4f44db2099aabcad9bebf968de5f7271b458f71c8. The root is combined with other information (the software version, the previous block's hash, the timestamp, the difficulty target, and the nonce) and then run through a hash function to produce the block's unique hash: 000000000000000000bfc767ef8bf28c42cbd4bdbafd9aa1b5c3c33c2b089594 in the case of block #482819. This hash is not actually included in the relevant block, but the next one; it is distinct from the Merkle root.

The Merkle tree is useful because it allows users to verify a specific transaction without downloading the whole blockchain (over 130 gigabytes at the end of August 2017). For example, say that you wanted to verify that transaction TD is included in the block in the diagram above. If you have the root hash (HABCDEFGH), the process is like a game of sudoku: you query the network about HD, and it returns HC, HAB, and HEFGH. The Merkle tree allows you to verify that everything is accounted for with three hashes: given HAB, HC, HEFGH, and the root HABCDEFGH, HD (the only missing hash) has to be present in the data.

Merkle Tree 2:

Merkle trees are named after Ralph Merkle, who proposed them in a 1987 paper titled "A Digital Signature Based on a Conventional Encryption Function." Merkle also invented cryptographic hashing.

In Short:

A Merkle tree is defined as a way to organize lots of data in a small, efficient and secure package.

In 1979 Ralph Merkle, a computer scientist, created a patent for Merkle trees. A Merkle tree uses computer technology known as “hashing” to take information and turns it into letters and numbers of a certain length.

For example, “I like bitcoin” can be hashed and will equal: ad3e58f21b94f32dcadca6b71df4c31a18179f38011551a17a80d0ff065d22c5

If I were to capitalize the “b” in bitcoin, so it says, “I like Bitcoin” the hash will be completely different:

d988ca30eaa88c0410ad6e48a5297c0d505dcee572f9884f1a6fa2cbc8dedc86
Hashes cannot be reversed to get the original text. But you can verify the above hashes are correct simply by going to this website and typing in the same text as above: https://www.movable-type.co.uk/scripts/sha256.html

A Merkle tree works like this:
Two units of information are individually hashed. These are known as Merkle leaves.
Those two hashes are then hashed together. These are known as Merkle branches.
Multiple branches are hashed together finally getting one single hash. This is known as a Merkle root.

A Merkle tree is useful because it allows computers to verify information at the bottom of the tree, the leaves, without having to store the entire set of information.

Mega-Hashes: Defined in CryptoCurrency

Hash rate is defined as the speed that a computer can take any set of information and turn it into letters and numbers of a certain length. Hash rate is also the combined hash speed of every computer in the network. Hash rate is calculated at hashes per second (h/s).

Hash rate is important for computers that mine. Mining is the process of recording and verifying information on the digital record known as the blockchain. The blockchain is made up of a sequence of single recordings known as a block.

To keep the blockchain network running smoothly, only one block can be created at a time. To control when blocks are created, users are required to make their computers solve a math problem involving hashing. The first computer to solve this problem can create a new block and record information on the blockchain.

Miners often purchase very expensive specially designed computers that have higher hash rates to increase their chances of solving the math problem first. These mining computers use tons of electricity to power their computers. This expensive process earns miners a reward in brand crypto plus fees paid by each user for their transactions.

Similar to memory size, hash rate is counted like this:

1 kilo hash per second is one thousand (1,000) hashes per second
1 mega hash per second is one million (1,000,000) hashes per second.
1 giga hash per second is one billion (1,000,000,000) hashes per second.
1 tera hash per second is one trillion (1,000,000,000,000) hashes per second.
1 peta hash per second is one quadrillion (1,000,000,000,000,000) hashes per second.
1 exa hash per second is one quintillion (1,000,000,000,000,000,000) hashes per second.

Masternode: Defined in CryptoCurrency

1. A masternode’s managing role is to vote on proposals to improve the Dash system. Every masternode gets one vote.
2. A masternode’s special jobs include creating instant transactions, known as “InstantSend”, and private transactions that hide the fact that you’ve sent money, known as “PrivateSend”.

Masternode Introduction:

People usually think that only those who can analyze the market trends or are day traders can make money in the crypto space. But that’s not the case! In the crypto space, until the concept of masternode was first introduced, making money mainly required holding the cryptocurrency itself and hoping for the price to increase. However, relatively stable and regular returns are now a reality with masternode hosting. But let’s first be clear what a masternode is before you can explore how to make money by hosting one.

What is Masternode(?):

Simply speaking, a masternode is a server on a decentralized network that keeps the full copy of the blockchain in real-time. It has unique functions which makes it different from normal nodes. They include features like doing instant transactions, increasing the privacy of transactions, and direct send.

Masternodes stores all information about the network in wallets that are fully synchronized and 24*7 connected with the blockchain network. Masternodes also validates or rejects new transactions that are added in the process of generating a new block.

Hosting a masternode is often expensive and relatively complex. Hence it’s not open to the usual node operators. However, masternode owners are well rewarded. Eventually, it helps cryptocurrency to develop and grow and simultaneously giving an additional source of income.

Factors to consider before setting up Masternode:

Masternodes can be run by anyone for a cryptocurrency. However, there is an entry criterion in place to ensure that the system doesn’t get malicious. The entry barrier is what one needs to collateralize certain units of that particular cryptocurrency to run a masternode.

This is done to avoid any frauds or corruptions by masternode owners. So naturally, it becomes very less likely that a masternode operator will do any fraud because he has a stake in running the whole system.

In order to become a masternode, you must consider the below factors:

A masternode is an always online computer (ideally — a server) that has a static IP and is running cryptocurrency wallet software that is fully synchronized with the blockchain network.

Your wallet should possess specific technical parameters: switched on 24/7, the power of the computer, etc.

To run a masternode you must purchase in a specific amount of coins to deposit into the wallet as collateral (For DASH minimum you need 1000 DASH units and for PIVX minimum you need 10,000 PIVX units). So this minimum units varies from crypto to crypto. This is mostly a much bigger expenditure besides the hardware costs.

The volume of such collateral varies from coin to coin, but it is always a considerable amount of money. The collateral can’t be withdrawn as long as the masternode is running. However, when the user decides to stop supporting the payment network then they can transfer and sell the coins from the wallet.

Running a Shared Masternode is the obvious solution if you can’t afford to run a full masternode because of the high entry barrier. Multiple users can pool in their coins with a defined minimum stake. Once the pool accumulates 100% of the coins needed to run a Masternode, the fee generation model commences. As per users’ percentage of the overall stake, the fees are distributed among the users.

Depending on the network and other aspects, masternodes may be rewarded once per day, or even several times per day. The other factors include the specific coin that is chosen, the price increase in that coin and the particular protocol.

The masternode operator will require to take a look around and find the coins that are offering the most potential ROI monthly. However, one of the most important aspects of that equation is the expected price appreciation of the coin.

How to Host a Masternode:

Setting up your own masternode can be quite a complex procedure that would require some familiarity with Linux command line. If this is something that you do not feel completely comfortable with then there are other options available. One of the easier options is to make use of reliable third-party hosting services. However, these will require monthly expenses which could take a good part of your return.

Whichever option you pick, running a masternode can be an attractive alternative to just holding your crypto coins. It will give that added advantage of your money working for you and providing you with cryptocoins while you sleep.

Your server hosting costs should be somewhere into the dozens of dollars depending on which company you go to and what package you choose. Proper due diligence must be carried out before purchasing the Masternode hosted services. You’ll need to do some research and see what route or what package is right for you, but rest assured you have multiple options.

How much Money can Investors make from Masternodes(?):

Masternodes are very useful for crypto investors because it gives them the opportunity to make a stable passive income. Different cryptocurrencies have different incentive models through which a Masternode operator can earn a decently monthly or weekly income. Different models depend on a few factors...

How that coin assists masternodes:

How much the selected coin appreciates in price in the coming years

If all coins are worth significantly more in the coming ten years, then running masternodes will end up being very profitable for everyone who took the leap with one regardless of which coin you chose. Though, no matter how obvious it seems that the crypto economy has heaps and bounds to grow from here, nothing is guaranteed in the cryptospace.

Masternode operators typically earn anywhere between five percent and 20 percent of a given block reward, depending on which coin is being supported. These rewards help compensate the costs of running masternodes in the first place, while also motivating the creation of further masternodes.

Summarization:

To summarize, it’s evident that masternodes make for a relatively effective passive source of stable income. It attracts users who can’t or chooses not to constantly monitor the state of the cryptospace or trade on crypto exchanges frequently.

Millibitcoin: Defined in CryptoCurrency

The Case for Using mBTC Over BTC Denominations mBTC:

People proposing this idea believe it’s the right time to start referring to bitcoin percentages below one bitcoin in this fashion, to make calculations easier and to attract new users who think one bitcoin is too expensive.

Using mBTC Denominations:

The reason people would like to use the mBTC unit measurements instead is because it’s easier for humans to innumerate and communicate smaller portions of bitcoin. Furthermore, some people just learning about bitcoin sometimes believe they have to purchase a whole coin, which is not the case as anyone can purchase bitcoins in fractions.

So bitcoin proponents believe using units of mBTC to describe smaller portions would allow new users to better conceptualize that they can buy ten dollars worth or 5 mBTC. There are a few wallet services and business that use the mBTC unit denomination within their application’s interface. Wallets that use mBTC include Electrum, Blockchain, and Mycelium.

Satoshis & Bits:

Would it be Easier to Explain to New Users(?):

“Many new people that ask to me about bitcoins are “scared” by the fact that to buy a bitcoin you need several thousand of euros,” explains the post.

Others believe things are just fine the way it is and it would be too difficult for the community and industry to adopt this language.

Furthermore, some believe wallets companies, exchanges, and bitcoin-based businesses should decide to use whatever they prefer.

What do you think about promoting the use of mBTC for smaller bitcoin denominations? Let is know in the comments below.

Max Supply: Defined in CryptoCurrency

Maximum Supply:

The maximum supply of a cryptocurrency refers to the maximum number of coins or tokens that will be ever created. This means that once the maximum supply is reached, there won’t be any new coins mined, minted or produced in any other way.

Normally, the maximum supply is capped by the limits defined by the underlying protocol of each digital asset. Therefore, the maximum supply and issuance of new coins are usually defined at the genesis block according to the project’s source code (which also defines many other features and functionalities).

Setting a steady issuance rate together with a predefined maximum supply can be valuable for controlling the inflation rate of a cryptocurrency, which may potentially lead to a long-term appreciation of the asset. Generally speaking, when the maximum supply is reached, there will be fewer coins available on the market. This is expected to create market scarcity, which may eventually lead to deflation conditions (or 0% inflation rates).

However, some cryptocurrencies do not have a predefined maximum supply, meaning they can be mined or minted continuously. Ethereum is a notable example of a cryptocurrency system that has no predetermined maximum supply. Ether’s supply is constantly increasing as new blocks are generated.

Max supply vs. total supply:
As mentioned, the calculation of max supply includes all coins that were already produced (or mined) plus the coins that are yet to be issued (in the future). On the other hand, the total supply includes only the coins that were already produced minus the units that were destroyed, for instance, in coin burn events.

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Tuesday, June 15, 2021

Microbitcoin [uBTC]: Defined in CryptoCurrency

Megabitcoin: Defined in CryptoCurrency

Merkle Tree:

Defined in CryptoCurrency

Merkle Tree Explained

Masternode: Defined in CryptoCurrency

Millibitcoin: Defined in CryptoCurrency

Microbitcoin [uBTC]:
Defined in CryptoCurrency