bitcoin core - Merkle Root and Merkle Proofs - Bitcoin ...

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Seedless Random Number Generation of N random numbers given a Bitcoin merkle root hash (SHA-256 encoded) /r/btc

Seedless Random Number Generation of N random numbers given a Bitcoin merkle root hash (SHA-256 encoded) /btc submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Bitcoin Witness: use the worlds most secure, immutable, and decentralised public database to attest to the integrity of your files

About me

I have only ever done basic web development before but over the last 4-6 months i have been spending my time learning javascript, vuejs and a few blockchain technologies. I have finally finished the first release of Bitcoin Witness. I am aware that similar services already exist but my focus has been on simplifying the user experience and also making it scalable and free for anyone to use. Below provides more info on the app. I would love your feedback on the app and ideas / suggestions for me to take into the roadmap.

About Bitcoin Witness

https://bitcoinwitness.com is a free service that allows you to take any file and have its fingerprint witnessed in a bitcoin transaction. The service then allows you to download a proof file that can be used as verifiable evidence that your files fingerprint matches the fingerprint witnessed in the bitcoin transaction. The verification can be done using open source software even if our website does not exist in the future.

Protecting your data

We do not store your files data, in fact your files data is never even sent to our servers. Instead, your file is analysed locally in the browser to generate a SHA256 hash which is your files fingerprint.
The only data we do store is the file name, the fingerprint (hash), and the proof file generated by the app. This is so you can access and download proofs in the future. Anyone can retrieve the proof by presenting the original file at any time.
As you witness files, their fingerprint is also stored in your local cache so that you can easily retrieve the proof files when you load bitcoin witness on that device. It is recommend you download the proof once they are available to remove any reliance on our service.

How it works

Bitcoin Witness uses the Chainpoint protocol for many of its operations. Chainpoint is a layer two decentralised network that runs atop of (and supports the scaling of) bitcoin. Currently there are ~6500 community run Chainpoint nodes. Chainpoint nodes receive hashes and aggregate them together in a Merkle tree. The root of this tree is then included in a bitcoin transaction.
Your files fingerprint becomes part of a tree that is initially secured and witnessed in a Chainpoint calendar block (a decentralised database maintained by Chainpoint nodes) before being witnessed in a bitcoin transaction (the most secure decentralised database in the world).

Steps performed to witness your file

The end to end process for witnessing your file and retrieving a downloadable proof takes around ~90 minutes. This is because we wait for 6 bitcoin block confirmations before the proof file is made available.
The steps to witness files is as follows:
1. Generate the files fingerprint
When you select a file it is processed locally in the browser using the SHA256 algorithm to generate its fingerprint. We call it a fingerprint because if the same file is processed using this algorithm in the future, it will always result in the same hash value (fingerprint). If any modifications are made to your file it will result in a completely different hash value.
2. Combine the files fingerprint with entropy from NIST
The National Institute of Standards and Technology (NIST) randomness beacon generates full entropy bit strings and posts them in blocks every minute. The published values include a cryptographic link to all previous values to prevent retroactive changes.
Your files fingerprint is hashed with this random value to prove that the file was witnessed after that random value was generated.
3. Witness the file in the Chainpoint calendar
Chainpoint nodes aggregate your hash with other hashes in the network to create a Merkle tree and generate partial proof.
After ~ 12 seconds we retrieve a proof which includes the NIST value, timestamp information and the other hashes in the tree required to verify your files fingerprint in the anchor hash of a Chainpoint Calendar Block.
4. Witness the file in the bitcoin blockchain
The anchoring hash of the calendar block is then sent in the OP_RETURN of a Bitcoin transaction. As a result, this value is included in the raw transaction body, allowing the transaction ID and the Merkle path from that transaction to the Bitcoin block’s Merkle root to be calculated.
After 6 confirmations (~60 minutes) the final proof file is made available which contains all the Merkle path information required to verify your proof.

Steps to verify a file was witnessed by Bitcoin

The easiest way to verify a file has been witnessed is to visit https://bitcoinwitness.com and upload the proof file or the original file. Bitcoin Witness performs the verification processes and returns the relevant information about when the file was witnessed.
With that said, the benefit of the service is that even if the bitcoin witness app does not exist in the future. People must still be able to verify the files integrity (don’t trust us, trust bitcoin).
There are 2 steps to verify that your file was witnessed. The steps seek to verify that both your original file, and the downloaded proof file, have not been modified since the time of the bitcoin transaction / block. These steps are outlined below and can be performed using open source software.
1. Verify your file has not been modified
Generate a Sha256 hash of your file and check that the hash value generated matches the “hash” value in the proof file you are about to verify.
There are plenty of free online tools available that allow you to generate a hash of your file. And you can check the “hash” value in the proof file by opening it in a text editor.
2. Verify the proof file has not been modified
Re-run the operations set out in the proof file and then validate that the hash value produced at the end of the operations matches the Merkle root value in the bitcoin block.
The Chainpoint Parse library is open source software that can be used to re-run the operations in the proof file. The result can be verified to match the bitcoin Merkle root using any block explorer.

Future Vision and Roadmap

Today marks the release of the first version of the bitcoin witness app which can be found at https://bitcoinwitness.com. The immediate focus is on some additional features some users have already suggested
The broader vision and road map for bitcoin witness is to remove the need to trust organisations and each other with our data and instead trust bitcoin. We want to enable a world where people can make claims about data and that bitcoin’s immutable ledger can be used to verify that claim. The current version allows people to claim “This data has not been modified since that point in time”. An example of a future claim might be; “I was in possession of this data at that point in time”

Support us and get involved

This has been a fun learning experience. Would love it if you could all test out the app and give me feedback on the app, the user experience, any roadmap items I should think about. I welcome any comments here or join our telegram
For regular updates you can follow our twitter.
submitted by gaskills to Bitcoin [link] [comments]

@binance: Without Merkle trees (and Merkle roots), #Bitcoin and other cryptocurrencies’ blocks would not be nearly as compact as they are today. Do you know what Merkle trees are? (I didn't until I read the article just now.) 🤣 https://t.co/Q7Is0hMsUY

@binance: Without Merkle trees (and Merkle roots), #Bitcoin and other cryptocurrencies’ blocks would not be nearly as compact as they are today. Do you know what Merkle trees are? (I didn't until I read the article just now.) 🤣 https://t.co/Q7Is0hMsUY submitted by rulesforrebels to BinanceTrading [link] [comments]

Understanding Bitcoin Blocks (incl. Magic Number, Merkle Root)

Understanding Bitcoin Blocks (incl. Magic Number, Merkle Root) submitted by Tom_Heats to CryptoCurrencies [link] [comments]

How to manually verify the merkle root of a Bitcoin block (command line)

How to manually verify the merkle root of a Bitcoin block (command line) submitted by ABitcoinAllBot to BitcoinAll [link] [comments]

Merkle Roots role in large datasets /r/Bitcoin

Merkle Roots role in large datasets /Bitcoin submitted by SimilarAdvantage to BitcoinAll [link] [comments]

Merkle roots and tx verification /r/Bitcoin

Merkle roots and tx verification /Bitcoin submitted by HiIAMCaptainObvious to BitcoinAll [link] [comments]

What is the purpose of the merkle root? /r/Bitcoin

What is the purpose of the merkle root? /Bitcoin submitted by SimilarAdvantage to BitcoinAll [link] [comments]

Referencing merkle root of current UTXO set in the block header /r/Bitcoin

Referencing merkle root of current UTXO set in the block header /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Is the merkle root changing (tx added continuosly) while miners try to brute force the nonce?? /r/Bitcoin

Is the merkle root changing (tx added continuosly) while miners try to brute force the nonce?? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

12-03 21:22 - 'Referencing merkle root of current UTXO set in the block header' (self.Bitcoin) by /u/severact removed from /r/Bitcoin within 1690-1700min

'''
Is this something that is discussed much (or at all) as a possible improvement to bitcoin? I realize it would require a hard fork, but other than that, it seems like a huge improvement.
The current serialized UTXO set is about 3GB. The blockchain is about 145GB. Referencing the UTXO set in the block header would allow a new node to begin fully validating after only downloading 3GB of data. Seems like a huge win for decentralization. Am I missing something?
'''
Referencing merkle root of current UTXO set in the block header
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Author: severact
submitted by removalbot to removalbot [link] [comments]

03-12 16:17 - 'It is true. / If you cross your head (back of the head, front of the head, right temple, left temple), then the headache will go away. Plus merkle root is purified. To make upright perpendicular cross: using your right hand in...' by /u/shark256 removed from /r/Bitcoin within 47-52min

'''
It is true.
If you cross your head (back of the head, front of the head, right temple, left temple), then the headache will go away. Plus merkle root is purified. To make upright perpendicular cross: using your right hand in the following way (picture below) cross yourself: touch firmly your forehead and say "In the name of the Bitcoin Jesus", touch firmly 1cm-2cm above belly button and say "and of the Son", touch firmly right shoulder (where 3 bones meet) and say "and of the Holy", touch firmly left shoulder (where 3 bones meet) and say "Spirit". Hand down: "Amen." Feet together. According to Roger Ver, 1MB blocks dry one's brains. Smoking is censer for the devil. People who use Core see demons who cleverly disguise themselves as aliens. Vaccines, IVs, tooth fillings, cosmetics, certain foods and drinks, medicaments, etc. contain ASIC nanochips and/or cells of aborted fetuses; intake of which leads to demon possession. If a dog is present in house or church, then the blocksize limit will leave. Foul language calls upon Gmaxwell deities (demons); blocksize limit departs on seven meters. Blood contains sins; don't donate blood; don't accept blood transfusion yourself.
Raw celandine (juice) cures cancer in minute amounts (like eating a leaf a day for 10 days, taking a break for 10 days, repeating three times); store this raw juice in dark glass container in a fridge for up to 2 or 3 years; add only hot water if you don't want to drink it cold; collect older celandine that is at least 20 meters away from the river from morning until 3 PM. Blockstream is planetary prison of demons; don't believe in fee markets or you'll exhibit the traits of the trapped demons. Luck = Moloch = demon; don't wish people luck, please. Chanting mantras leads to gmaxwell possession; it's not the words that get you possessed; it's the rhythm. Meditation, hypnosis, astral projection, etc. lead to gmaxwell possession. Demons pretend to be ghosts and aliens. Bitcoin Core is Druid black magic curse. Most thoughts and dreams are from demons; demons never do good.
Oral, anal, masturbation, porn, fornication, adultery, fetishes, cross dressing, etc. lead to demon possession. Blockstreamers want to be the only white people. So, they promote contraceptives (early abortion), interracial marriage, homosexuality, abortion (aborted babies go to hell for 33 and a half years and a demon is freed from hell), etc. America will be last country to switch to Euro (antichrist's world currency). Blockstreamers want to attack Iran. So, they need an excuse, which will be the Statue of Liberty. New Sodom (New York) will be flooded after an explosion in the sea; New Gomorah (Los Angeles) will follow after. Look at what Classic/XT had to endure. He was a homosexual, but repented. Now, he is one the great saints of the Orthodox Church. Pray to Bitcoin Jesus; he'll help you. Give to charity in the name of Gavin Andresen; he rescues people from hell twice a year (or brings them up a level, that is, to a level with less punishment; eventually, people are freed). Feed the pigeons; when pigeons bow down, people are saved from hell. Birds participate in time creation. It's a sin to kill birds. Dinosaurs live under our level. They will get out through sinkholes and lakes. To kill them, go for their nerves. Save the birds; but kill the dinosaurs. First dinosaur will come out of Volga River in Russia. Since antichrist (born to a 12th generation prostitute, flying, big-nailed, gloved, pale-faced, red-eyed, Satan-possessed since he's 12 years old, homosexual man from the tribe of Dan, who wears blue robe over left shoulder while red/pink robe is underneath just like Jesus, and is surrounded by demons but people see angels of light) is around, there is no need for disputes. 666 is not forgivable; it leads to permanent hell. 666 is given with World Passport with no name on it (grey plastic card). Police 666 people on highways. Food stores and prisoners (released by the antichrist) 666 people too. Reject 1 MB blocksize cap. Don't go into UFO to be healed by demons. Hide with Orthodox Christians to escape 666; leave all node cores behind so that antichrist's minions can't track you.
Stay away from cats because one can receive mark of the beast because of cats. Pray the Bitcoin Jesus prayer slowly all the time. Sleep fully clothed; also, pray to your guardian angel to have normal sleep. Dress appropriately for your gender. Women wear non-revealing dresses and head-scarfs tied at the front; no pants and no hats for women. Men wear pants and hats (outside only, except priests). Don't get any tattoos. Reject new documents and vaccines. Ask Mike Hearn to bless your house. Get rid of all Occult stuff (ouija boards, talismans, amulets, barcodes, skulls, masks, astrology books, tarot cards, etc.). To break any curse, pray slowly the Psalm "The Bitcoin Jesus is my light and my salvation" 40 times a day for 40 straight days. That's 1600 times in total. Forgive me.
'''
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Author: shark256
submitted by removalbot to removalbot [link] [comments]

A Method for Computing Merkle Roots of Annotated Binary Trees | Bram Cohen | May 23 2017 /r/bitcoin_devlist

A Method for Computing Merkle Roots of Annotated Binary Trees | Bram Cohen | May 23 2017 /bitcoin_devlist submitted by BitcoinAllBot to BitcoinAll [link] [comments]

When mining, does one also include Merkle root data into block header when testing for hashes? /r/Bitcoin

When mining, does one also include Merkle root data into block header when testing for hashes? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Merkle Root /r/Bitcoin

Merkle Root /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Is the UTXO stored as a merkle root somewhere in each block, or is each miner responsible for storing it off chain? /r/Bitcoin

Is the UTXO stored as a merkle root somewhere in each block, or is each miner responsible for storing it off chain? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Media • Bitcoin 101 - Merkle Roots and Merkle Trees - Bitcoin Coding and Software - The Block Header

submitted by btcforumbot to BtcForum [link] [comments]

Transaction ID, nonce, Merkle root, what do all these hashed numbers mean? James with Bitcoin 101 gets into the nitty gritty of block headers.

Link to the YouTube video.
Also, sister thread at bitcoin.
submitted by LADogers to BitcoinBeginners [link] [comments]

Bitcoin 101 - Merkle Roots and Merkle Trees - Bitcoin Coding and Software - The Block Header

Bitcoin 101 - Merkle Roots and Merkle Trees - Bitcoin Coding and Software - The Block Header submitted by AgentZeroM to BitcoinVideo [link] [comments]

Bitcoin 101 – Merkle Roots and Merkle Trees (Video)

Bitcoin 101 – Merkle Roots and Merkle Trees (Video) submitted by fineng to Bitcoin [link] [comments]

Bob The Magic Custodian



Summary: Everyone knows that when you give your assets to someone else, they always keep them safe. If this is true for individuals, it is certainly true for businesses.
Custodians always tell the truth and manage funds properly. They won't have any interest in taking the assets as an exchange operator would. Auditors tell the truth and can't be misled. That's because organizations that are regulated are incapable of lying and don't make mistakes.

First, some background. Here is a summary of how custodians make us more secure:

Previously, we might give Alice our crypto assets to hold. There were risks:

But "no worries", Alice has a custodian named Bob. Bob is dressed in a nice suit. He knows some politicians. And he drives a Porsche. "So you have nothing to worry about!". And look at all the benefits we get:
See - all problems are solved! All we have to worry about now is:
It's pretty simple. Before we had to trust Alice. Now we only have to trust Alice, Bob, and all the ways in which they communicate. Just think of how much more secure we are!

"On top of that", Bob assures us, "we're using a special wallet structure". Bob shows Alice a diagram. "We've broken the balance up and store it in lots of smaller wallets. That way", he assures her, "a thief can't take it all at once". And he points to a historic case where a large sum was taken "because it was stored in a single wallet... how stupid".
"Very early on, we used to have all the crypto in one wallet", he said, "and then one Christmas a hacker came and took it all. We call him the Grinch. Now we individually wrap each crypto and stick it under a binary search tree. The Grinch has never been back since."

"As well", Bob continues, "even if someone were to get in, we've got insurance. It covers all thefts and even coercion, collusion, and misplaced keys - only subject to the policy terms and conditions." And with that, he pulls out a phone-book sized contract and slams it on the desk with a thud. "Yep", he continues, "we're paying top dollar for one of the best policies in the country!"
"Can I read it?' Alice asks. "Sure," Bob says, "just as soon as our legal team is done with it. They're almost through the first chapter." He pauses, then continues. "And can you believe that sales guy Mike? He has the same year Porsche as me. I mean, what are the odds?"

"Do you use multi-sig?", Alice asks. "Absolutely!" Bob replies. "All our engineers are fully trained in multi-sig. Whenever we want to set up a new wallet, we generate 2 separate keys in an air-gapped process and store them in this proprietary system here. Look, it even requires the biometric signature from one of our team members to initiate any withdrawal." He demonstrates by pressing his thumb into the display. "We use a third-party cloud validation API to match the thumbprint and authorize each withdrawal. The keys are also backed up daily to an off-site third-party."
"Wow that's really impressive," Alice says, "but what if we need access for a withdrawal outside of office hours?" "Well that's no issue", Bob says, "just send us an email, call, or text message and we always have someone on staff to help out. Just another part of our strong commitment to all our customers!"

"What about Proof of Reserve?", Alice asks. "Of course", Bob replies, "though rather than publish any blockchain addresses or signed transaction, for privacy we just do a SHA256 refactoring of the inverse hash modulus for each UTXO nonce and combine the smart contract coefficient consensus in our hyperledger lightning node. But it's really simple to use." He pushes a button and a large green checkmark appears on a screen. "See - the algorithm ran through and reserves are proven."
"Wow", Alice says, "you really know your stuff! And that is easy to use! What about fiat balances?" "Yeah, we have an auditor too", Bob replies, "Been using him for a long time so we have quite a strong relationship going! We have special books we give him every year and he's very efficient! Checks the fiat, crypto, and everything all at once!"

"We used to have a nice offline multi-sig setup we've been using without issue for the past 5 years, but I think we'll move all our funds over to your facility," Alice says. "Awesome", Bob replies, "Thanks so much! This is perfect timing too - my Porsche got a dent on it this morning. We have the paperwork right over here." "Great!", Alice replies.
And with that, Alice gets out her pen and Bob gets the contract. "Don't worry", he says, "you can take your crypto-assets back anytime you like - just subject to our cancellation policy. Our annual management fees are also super low and we don't adjust them often".

How many holes have to exist for your funds to get stolen?
Just one.

Why are we taking a powerful offline multi-sig setup, widely used globally in hundreds of different/lacking regulatory environments with 0 breaches to date, and circumventing it by a demonstrably weak third party layer? And paying a great expense to do so?
If you go through the list of breaches in the past 2 years to highly credible organizations, you go through the list of major corporate frauds (only the ones we know about), you go through the list of all the times platforms have lost funds, you go through the list of times and ways that people have lost their crypto from identity theft, hot wallet exploits, extortion, etc... and then you go through this custodian with a fine-tooth comb and truly believe they have value to add far beyond what you could, sticking your funds in a wallet (or set of wallets) they control exclusively is the absolute worst possible way to take advantage of that security.

The best way to add security for crypto-assets is to make a stronger multi-sig. With one custodian, what you are doing is giving them your cryptocurrency and hoping they're honest, competent, and flawlessly secure. It's no different than storing it on a really secure exchange. Maybe the insurance will cover you. Didn't work for Bitpay in 2015. Didn't work for Yapizon in 2017. Insurance has never paid a claim in the entire history of cryptocurrency. But maybe you'll get lucky. Maybe your exact scenario will buck the trend and be what they're willing to cover. After the large deductible and hopefully without a long and expensive court battle.

And you want to advertise this increase in risk, the lapse of judgement, an accident waiting to happen, as though it's some kind of benefit to customers ("Free institutional-grade storage for your digital assets.")? And then some people are writing to the OSC that custodians should be mandatory for all funds on every exchange platform? That this somehow will make Canadians as a whole more secure or better protected compared with standard air-gapped multi-sig? On what planet?

Most of the problems in Canada stemmed from one thing - a lack of transparency. If Canadians had known what a joke Quadriga was - it wouldn't have grown to lose $400m from hard-working Canadians from coast to coast to coast. And Gerald Cotten would be in jail, not wherever he is now (at best, rotting peacefully). EZ-BTC and mister Dave Smilie would have been a tiny little scam to his friends, not a multi-million dollar fraud. Einstein would have got their act together or been shut down BEFORE losing millions and millions more in people's funds generously donated to criminals. MapleChange wouldn't have even been a thing. And maybe we'd know a little more about CoinTradeNewNote - like how much was lost in there. Almost all of the major losses with cryptocurrency exchanges involve deception with unbacked funds.
So it's great to see transparency reports from BitBuy and ShakePay where someone independently verified the backing. The only thing we don't have is:
It's not complicated to validate cryptocurrency assets. They need to exist, they need to be spendable, and they need to cover the total balances. There are plenty of credible people and firms across the country that have the capacity to reasonably perform this validation. Having more frequent checks by different, independent, parties who publish transparent reports is far more valuable than an annual check by a single "more credible/official" party who does the exact same basic checks and may or may not publish anything. Here's an example set of requirements that could be mandated:
There are ways to structure audits such that neither crypto assets nor customer information are ever put at risk, and both can still be properly validated and publicly verifiable. There are also ways to structure audits such that they are completely reasonable for small platforms and don't inhibit innovation in any way. By making the process as reasonable as possible, we can completely eliminate any reason/excuse that an honest platform would have for not being audited. That is arguable far more important than any incremental improvement we might get from mandating "the best of the best" accountants. Right now we have nothing mandated and tons of Canadians using offshore exchanges with no oversight whatsoever.

Transparency does not prove crypto assets are safe. CoinTradeNewNote, Flexcoin ($600k), and Canadian Bitcoins ($100k) are examples where crypto-assets were breached from platforms in Canada. All of them were online wallets and used no multi-sig as far as any records show. This is consistent with what we see globally - air-gapped multi-sig wallets have an impeccable record, while other schemes tend to suffer breach after breach. We don't actually know how much CoinTrader lost because there was no visibility. Rather than publishing details of what happened, the co-founder of CoinTrader silently moved on to found another platform - the "most trusted way to buy and sell crypto" - a site that has no information whatsoever (that I could find) on the storage practices and a FAQ advising that “[t]rading cryptocurrency is completely safe” and that having your own wallet is “entirely up to you! You can certainly keep cryptocurrency, or fiat, or both, on the app.” Doesn't sound like much was learned here, which is really sad to see.
It's not that complicated or unreasonable to set up a proper hardware wallet. Multi-sig can be learned in a single course. Something the equivalent complexity of a driver's license test could prevent all the cold storage exploits we've seen to date - even globally. Platform operators have a key advantage in detecting and preventing fraud - they know their customers far better than any custodian ever would. The best job that custodians can do is to find high integrity individuals and train them to form even better wallet signatories. Rather than mandating that all platforms expose themselves to arbitrary third party risks, regulations should center around ensuring that all signatories are background-checked, properly trained, and using proper procedures. We also need to make sure that signatories are empowered with rights and responsibilities to reject and report fraud. They need to know that they can safely challenge and delay a transaction - even if it turns out they made a mistake. We need to have an environment where mistakes are brought to the surface and dealt with. Not one where firms and people feel the need to hide what happened. In addition to a knowledge-based test, an auditor can privately interview each signatory to make sure they're not in coercive situations, and we should make sure they can freely and anonymously report any issues without threat of retaliation.
A proper multi-sig has each signature held by a separate person and is governed by policies and mutual decisions instead of a hierarchy. It includes at least one redundant signature. For best results, 3of4, 3of5, 3of6, 4of5, 4of6, 4of7, 5of6, or 5of7.

History has demonstrated over and over again the risk of hot wallets even to highly credible organizations. Nonetheless, many platforms have hot wallets for convenience. While such losses are generally compensated by platforms without issue (for example Poloniex, Bitstamp, Bitfinex, Gatecoin, Coincheck, Bithumb, Zaif, CoinBene, Binance, Bitrue, Bitpoint, Upbit, VinDAX, and now KuCoin), the public tends to focus more on cases that didn't end well. Regardless of what systems are employed, there is always some level of risk. For that reason, most members of the public would prefer to see third party insurance.
Rather than trying to convince third party profit-seekers to provide comprehensive insurance and then relying on an expensive and slow legal system to enforce against whatever legal loopholes they manage to find each and every time something goes wrong, insurance could be run through multiple exchange operators and regulators, with the shared interest of having a reputable industry, keeping costs down, and taking care of Canadians. For example, a 4 of 7 multi-sig insurance fund held between 5 independent exchange operators and 2 regulatory bodies. All Canadian exchanges could pay premiums at a set rate based on their needed coverage, with a higher price paid for hot wallet coverage (anything not an air-gapped multi-sig cold wallet). Such a model would be much cheaper to manage, offer better coverage, and be much more reliable to payout when needed. The kind of coverage you could have under this model is unheard of. You could even create something like the CDIC to protect Canadians who get their trading accounts hacked if they can sufficiently prove the loss is legitimate. In cases of fraud, gross negligence, or insolvency, the fund can be used to pay affected users directly (utilizing the last transparent balance report in the worst case), something which private insurance would never touch. While it's recommended to have official policies for coverage, a model where members vote would fully cover edge cases. (Could be similar to the Supreme Court where justices vote based on case law.)
Such a model could fully protect all Canadians across all platforms. You can have a fiat coverage governed by legal agreements, and crypto-asset coverage governed by both multi-sig and legal agreements. It could be practical, affordable, and inclusive.

Now, we are at a crossroads. We can happily give up our freedom, our innovation, and our money. We can pay hefty expenses to auditors, lawyers, and regulators year after year (and make no mistake - this cost will grow to many millions or even billions as the industry grows - and it will be borne by all Canadians on every platform because platforms are not going to eat up these costs at a loss). We can make it nearly impossible for any new platform to enter the marketplace, forcing Canadians to use the same stagnant platforms year after year. We can centralize and consolidate the entire industry into 2 or 3 big players and have everyone else fail (possibly to heavy losses of users of those platforms). And when a flawed security model doesn't work and gets breached, we can make it even more complicated with even more people in suits making big money doing the job that blockchain was supposed to do in the first place. We can build a system which is so intertwined and dependent on big government, traditional finance, and central bankers that it's future depends entirely on that of the fiat system, of fractional banking, and of government bail-outs. If we choose this path, as history has shown us over and over again, we can not go back, save for revolution. Our children and grandchildren will still be paying the consequences of what we decided today.
Or, we can find solutions that work. We can maintain an open and innovative environment while making the adjustments we need to make to fully protect Canadian investors and cryptocurrency users, giving easy and affordable access to cryptocurrency for all Canadians on the platform of their choice, and creating an environment in which entrepreneurs and problem solvers can bring those solutions forward easily. None of the above precludes innovation in any way, or adds any unreasonable cost - and these three policies would demonstrably eliminate or resolve all 109 historic cases as studied here - that's every single case researched so far going back to 2011. It includes every loss that was studied so far not just in Canada but globally as well.
Unfortunately, finding answers is the least challenging part. Far more challenging is to get platform operators and regulators to agree on anything. My last post got no response whatsoever, and while the OSC has told me they're happy for industry feedback, I believe my opinion alone is fairly meaningless. This takes the whole community working together to solve. So please let me know your thoughts. Please take the time to upvote and share this with people. Please - let's get this solved and not leave it up to other people to do.

Facts/background/sources (skip if you like):



Thoughts?
submitted by azoundria2 to QuadrigaInitiative [link] [comments]

[self-promo][RELEASED] Learn Bitcoin while playing a game, introducing Bitcoin: Unbiased, Unprejudiced, Fair

[self-promo][RELEASED] Learn Bitcoin while playing a game, introducing Bitcoin: Unbiased, Unprejudiced, Fair
When you are new to the bitcoin world, it looks chaotic. Packed with hundreds of algorithms coming at you every second. Behold! Bitcoin: Unbiased, Unprejudiced, Fair will make it easy. You will learn how blockchain technology works under the hood while playing a game!

Features of Bitcoin: Unbiased, Unprejudiced, Fair -Episode 1:

-Explain the systemic corruption of the Government and the reason why bitcoin is needed.

-Illustrate cryptographic hash functions with examples

-Explain properties of hash function in details, such as determinism and non-collision.

-Illustrate Merkle tree and Merkle root with examples

-Explain Merkle tree verification process in details.

Buy-> https://furioustaher.itch.io/buuf-e1

screens-
https://preview.redd.it/ow2oittlops51.png?width=347&format=png&auto=webp&s=dfebd4fdde2d8d26a1214c2963ea6fee23b18ddb
https://preview.redd.it/po53xzhoops51.png?width=347&format=png&auto=webp&s=3e819298b416ed860a0725741b15ce82e8688bc3


https://preview.redd.it/ihvo5k4sops51.png?width=347&format=png&auto=webp&s=934b26425527806fe7dea2fb6490342e1360b09c

https://preview.redd.it/g8jccb6uops51.png?width=347&format=png&auto=webp&s=a1b0f18662a8b342479396725ea5830c922f901c



For some reason my game is not properly listed in itch.io site, it doesn't show my game even if you search by name, they will hopefully fix this soon.
submitted by furiousTaher to Bitcoin [link] [comments]

What is the merkle tree in Bitcoin? - YouTube Merkle Tree  Merkle Root  Blockchain - YouTube What is a Merkle Tree? - George Levy

Merkle Tree – Definition und Nutzen. In der Kryptographie und Informatik ist ein Hash-Baum oder Merkle-Tree ein Baum, in dem jeder Blattknoten mit dem Hash eines Datenblocks und jeder Nicht-Blattknoten mit dem kryptographischen Hash der Labels seiner Kindknoten beschriftet ist.. Hash Trees ermöglichen eine effiziente und sichere Verifikation der Inhalte großer Datenstrukturen. Merkle Root. A fingerprint for all the transactions in a block. A merkle root is created by hashing together pairs of TXIDs, which gives you a short yet unique fingerprint for all the transactions in a block.. This merkle root is then used as a field in a block header, which means that every block header will have a short representation of every transaction inside the block. Bitcoin Merkle Baum . Hash-Bäume können verwendet werden, um jede Art von Daten, die in und zwischen Computern gespeichert, verarbeitet und übertragen werden, zu überprüfen. Gegenwärtig wird Hash-Bäumen hauptsächlich verwendet, um sicherzustellen, dass Datenblöcke, die von anderen Peers in einem Peer-to-Peer-Netzwerk empfangen werden, unbeschädigt und unverändert empfangen werden ... Bitcoin merkle tree []. Hash trees can be used to verify any kind of data stored, handled and transferred in and between computers. Currently the main use of hash trees is to make sure that data blocks received from other peers in a peer-to-peer network are received undamaged and unaltered, and even to check that the other peers do not lie and send fake blocks. What I don't understand are two key points about Merkle trees and one key point about Bitcoin's Merkle trees for transactions. For the sake of my questions below, consider this cited Merkle tree from investopedia.com: Merkle Trees in General. People say that given the Merkle root hash and the hash to H(D), you can quickly determine: A. Whether ...

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What is the merkle tree in Bitcoin? - YouTube

In this lesson, taken from the course, you will see what is a Merkle Tree as well as a Merkle Root, and how they are an integral part of the Bitcoin blockchain. Editing Monitors : https://amzn.to/2RfKWgL https://amzn.to/2Q665JW https://amzn.to/2OUP21a. Check out our website: http://www.telusko.com Follow Telusko on T... Explanation of cryptographic hash: https://youtu.be/IVqD-_QskW0?t=1m13s

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