Proof Of Stake Mining, How it actually works

I've seen tons of broad descriptions of proof-of-stake mining like "instead of using computing power, you just leave your wallet open with your coins", but this doesn't explain anything as to how PoS actually works, how it's secure, and why more computing power doesn't give any advantage. So, here I would like to explain it in technical terms, but hopefully broad enough that non-technical people can understand it.

Proof-of-stake mining is similar to Proof-of-work at a technical level. It involves a sort of lottery, similar to proof-of-work, but the difficult of this lottery is weighted depending on how many coins you are staking. The overall process for "attempting" to mine a PoS block is like so:

  1. Add a coinbase transaction, and a staking transaction (in most coins, must be hardcoded as the second transaction)
  2. Prepare block normally, with transactions from network etc
  3. Compute the PoS "kernel"
  4. Compute the "staking difficulty", which is the base difficulty, reduced by a ratio of how many coins you are staking (or in PoS version 1.0's case, the coinage of your coins)
  5. Compare the kernel's hash against the staking difficulty
  6. If the hash meets the difficulty then continue, otherwise go back to step 1 trying other UTXOs in your wallet that are suitable for staking
  7. Now you have a valid PoS block. The final step is to sign the block header, proving that you own the staking transaction from step 1.

Now I'll try to go into a bit more depth.

First, the staking transaction is a special transaction that is not possible on the normal Bitcoin blockchain. It includes the concept of negative fees. Because all stakers know the reward, they add this reward to this transaction, meaning that there are more output coins than input coins. This kind of transaction is only valid in a staking context.

Next, the PoS kernel. This is a bit complicated, but the important part is that nothing in it can be easily changed in the context of this block. In the case of blackcoin, the kernel consists of "stake modifier"(I'll explain that in a bit), current block's timestamp, and data from the "txPrev". The txPrev is the transaction of the output which is spent by the staking transaction(ie, the input to the staking transaction). The data pulled from the txPrev includes blocktime, transaction time, hash, and output number (vout 'n').

Because the txPrev data has already been confirmed in the blockchain, it is immutable. The only piece of data that is mutable is the current blocktime. The current blocktime in PoS coins is actually masked though (ie, the bottom bits are set to 0), so that there is very little entropy that can be had by making minor modifications to it. And the blocktime can not be beyond certain network drift limits, or not all nodes will accept the block. Finally the stake modifier is a value generated by taking some entropy bits from the previous (iirc) 64 blocks and hashing it together to form a relatively random number. It's primary purpose is to make computing future block's (beyond the next block) kernel difficult.

Finally, all the data for the kernel is hashed together. The staking difficulty is computed simply. It takes the standard difficulty from Bitcoin, but makes it so that this difficulty is for 1 coin. If you stake 2 coins, then it's only half the difficulty. For 4 coins only a quarter of the difficulty, etc. There are some restrictions to this. In order to prevent someone from being able to control the network for a chain of blocks with a large number of coins, there is a limit to the amount of staking coins, and thus there is a limit on how much the base difficulty can be reduced by.

Finally, a signature is made, proving that the staking transaction actually belongs to the person creating this block. The signature itself goes into the blockheader so that the signature is part of the blockhash.

All of this put together causes the following effects:

  1. PoS block "mining" does involve hashing and difficulty like PoW, but there are very few mechanisms to change the hash that is given, and so no matter how much computing power you have, it won't help any
  2. The stake modifier prevents predicting which block you will be able to successfully stake, because it adds a lot of uncontrollable entropy to the kernel hash
  3. The more coins you stake, the better chance you have at successfully creating a block, because of the weighted difficulty
  4. In case the network gets stuck due to a sudden drop in the number of people staking, the low-entropy version of the blocktime will eventually allow new kernel hashes to be generated given enough time, giving stakers left on the network a chance to have a successful PoS block
Posted: 3/24/2017 7:01:28 PM

Exploit Report Responses

So, I found it interesting the "response" I got from exchanges when reporting the Pharma Exploit. TL;DR; some malicious miners could mine blocks significantly faster than legitimate miners.

In all, 3 coins and 3 altcoin exchanges were affected. The coins being Pharma (2 exchanges), MasterDoge, and Hexxcoin (1 exchange). The 3 exchanges are C-CEX, BlueTrade, and Yobit. I also sent a message to Bittrex because I thought a coin was affected that they had a market for, but that was a mistake and the coin was not actually affected.

Responses from exchanges:

  1. C-CEX: No response, market still online
  2. Yobit: No response, market still online
  3. BlueTrade: Response summarized as "this exploit only affects the miners and because it doesn't affect transaction balances, we will keep the market up." (which is bullshit), market still online
  4. Bittrex: Response within 30 minutes asking for more details (at this point I indicated it doesn't actually affect a coin I thought it did), unaffected

So, there you go. Four exchanges contacted about a security problem. One replied back that was actually concerned about it.

Posted: 7/5/2015 5:49:59 PM

Provably Spendable Altcoin Burn Addresses

Please verify this message at

Copy and paste the text from here: to to ensure it is signed by me(earlz)

Also, for good measure, you should run the code I used to generate the addresses to confirm. You can never be too careful throwing around huge amounts of money


This is a list of unspendable addresses with which to burn coins to. When you send a coin to any of these addresses, they are permanently gone and can never be redeemed.

You can prove this by sending a small test amount to the address and then checking a block explorer or using getrawtransaction txid 1. You should see the coins output to somehting like "raw_scriptPubKey": "76a914000000000000000000000000000000000000000088ac" Some block explorers are also smart enough to indicate in their user interface that the coins were destroyed.

You can find the version number matching to the desired altcoin by checking two places in the code:

chainparams.cpp for bitcoin 0.9 and later based coins:

base58Prefixes[PUBKEY_ADDRESS] = list_of(0); //version number is 0

or in base58.h

PUBKEY_ADDRESS = 0, //version number is 0

You can generate this list of addresses with this C# code

Version: 0, Address: 1111111111111111111114oLvT2
Version: 1, Address: QLbz7JHiBTspS962RLKV8GndWFwjA5K66
Version: 2, Address: ogCyDbaRMvkdsHB3qfdyFYaG1WtWyNoVK
Version: 3, Address: 2D1oxKts8YPdTJRG5FzxTNpMtWmqBnjrht
Version: 4, Address: 2cMQwSC9qirWGjZM6gLGwW69X22mx9jRA9
Version: 5, Address: 31h1vYVSYuKP6AhS86fbRdMw9XHieotbST
Version: 6, Address: 3R2cuenjG5nFubqX9Wzuukdin2YfLYZyD1
Version: 7, Address: 3pNDtm61yGF8j2ycAwLEPsuWQXoc2sA4Km
Version: 8, Address: 4DhpssPJgSi1YU7hCMfYt1BJ334YnPXXvB
Version: 9, Address: 4d3RrygbPdAtMuFnDmzsN8T5fYKVUjFu7m
Version: 10, Address: 52P2r5yt6odmBLPsFCLBrFisJ3aSBHTm7z
Version: 11, Address: 5RidqCHAoz6dzmXxGcfWLNzevYqNrjZe5V
Version: 12, Address: 5q4EpJaTXAZWpCg3J2zppWGSZ46KYZmeCZ
Version: 13, Address: 6EPqoQskEM2Pddp8KTL9JdYEBZMGFDpfbU
Version: 14, Address: 6djSnXB2wXVGT4xDLsfTnkp1p4cD2B68LT
Version: 15, Address: 7353mdUKehx9GW6JNHznGt5oSZs9mBsnYx
Version: 16, Address: 7SQekjmcMtR25wEPPiL6m1Mb5586R5ut33
Version: 17, Address: 7qkFjr4u54stuNNUR8fRF8dNhaP37bg4x7
Version: 18, Address: 8F5rixNBnFLmioWZSYzjjFuAL5dytLR3ux
Version: 19, Address: 8eRTi4fUVRoeYEeeTyL4DPAwxatvbjaxFV
Version: 20, Address: 93m4hAxmCcGXMfnjVPfNhWSjb69sDziGSY
Version: 21, Address: 9T6fgHG3unjQB6vpWozhBdiXDbQp3P7F8M
Version: 22, Address: 9rSGfPZLcyCGzY4uYEL1fkzJr6fkicS2rs
Version: 23, Address: AFmseVrdL9f9oyCzZefL9tG6UbvhPbdYzM
Version: 24, Address: Af7Udc9v3L82dQM5b4zee1Xt77BeB76VTG
Version: 25, Address: B4T5ciTCkWauSqVAcVKy88ofjcSasUkSYU
Version: 26, Address: BTngbpkVTh3nGGdFdufHcG5TN7hXYuX31z
Version: 27, Address: Bs8Haw3nAsWf5hmLfKzc6PMEzcxUGSYjxf
Version: 28, Address: CGTta3M4t3yXu8uRgkKvaWd2d8DQvDPnpL
Version: 29, Address: CfoVZ9eMbESQia3WiAfF4dtpFdUMf7KWzm
Version: 30, Address: D596YFweJQuHY1BbjazZYmAbt8jJPbKehC
Version: 31, Address: DUUhXNEw1bNAMSKgm1Kt2tSPWdzF8952Np
Version: 32, Address: DspJWUYDimq3AsTmnRfCX1iB99FBnpDZgu
Version: 33, Address: EH9uVaqWRxHuzJbroqzX18yxmeW8XVJyV9
Version: 34, Address: EgVWUh8o98knojjwqGKqVGFkQ9m5BDNc9G
Version: 35, Address: F5q7ToS5rKDfdAt2rgf9yPXY2f21wp8sq4
Version: 36, Address: FVAiSujNZVgYSc27t6zUTWoKfAGxc8CEW5
Version: 37, Address: FtWKS22fGg9RG3ACuXKnwe57HfXuPKLD5o
Version: 38, Address: GHqvR8KwyrcJ5UJHvwf7RmLtvAnr5uTHdV
Version: 39, Address: GhBXQEdEh35AtuSNxMzRutcgYg3nkvq5Wb
Version: 40, Address: H6X8PLvXQDY3iLaTynKkQ1tUBBJjSZSf23
Version: 41, Address: HVrjNTDp7PzvXmiZ1Cf4t9AFogZgDAZZWi
Version: 42, Address: HuCLMZX6paToMCre2czPNGS3SBpctajMLL
Version: 43, Address: JJXwLfpPXkvgAdzj43KhrPhq4h5ZgWCZWe
Version: 44, Address: JhsYKn7gEwPYz58p5Tf2LWychCLWNQsFhn
Version: 45, Address: K7D9JtQxx7rRoWGu6szLpeFQKhbSzyUbC8
Version: 46, Address: KWYkHziFfJKJcwQz8JKfJmXBxCrPkUrNjU
Version: 47, Address: KutMH71YNUnBSNZ59ieyntnyai7LU5ciQj
Version: 48, Address: LKDxGDJq5fF4FohAB8zJH24mDDNHDNtqsE
Version: 49, Address: LiZZFKc7nqhw5EqFCZKcm9LYqidDsKHFSL
Version: 50, Address: M7uAERuQW2AotfyLDyewFGcLUDtAYu9v5V
Version: 51, Address: MXEmDYChDCdgi77RFPzFjPt86j97MwEZsu
Version: 52, Address: MvaNCeVyvP6ZXYFWGpKaDX9ujEQ418F7sm
Version: 53, Address: NKuyBkoGdZZSLyPbJEetheRhMjeznFZszf
Version: 54, Address: NjFaAs6ZLk2KAQXgKezDBmhUzEuwSacxX1
Version: 55, Address: P8bB9yPr3vVByqfmM5KXftyGckAtAdu6f8
Version: 56, Address: PXvn95h8m6x4oGorNVerA2F4FFRpqMqwAM
Version: 57, Address: PwGP8BzRUHQwchwwPuzAe9WqskgmbKp88f
Version: 58, Address: QLbz7JHiBTspS962RLKV8GndWFwiJNvEPz
Version: 59, Address: Qjwb6QazteLhFaE7SkeocQ4R8mCexgjaLb
Version: 60, Address: R9HC5WtHbpoa51NCUAz86XLCmGTbkf45NT
Version: 61, Address: RYco4dBaK1GStSWHVbKSaebzPmiYNjtd5R
Version: 62, Address: RwxQ3jUs2BjKhseNX1em4msn2GyVBjd1Lc
Version: 63, Address: SMJ12qn9jNCCXJnTYRz5Yu9ZenERqvYwfg
Version: 64, Address: Skdc1x5SSYf5LjvYZrKQ32RMHHVNWCkvvo
Version: 65, Address: T9yD14Nj9j7xAB4dbGeiX9h8unkKHxuWwb
Version: 66, Address: TZJozAg1ruapycCicgz31GxvYJ1G1qELV7
Version: 67, Address: TxeQyGyJa63ho3Loe7KMVQEiAoGCjsUGkb
Version: 68, Address: UMz1xPGbHGWacUUtfXefyXWVoJX9Q2kNtF
Version: 69, Address: UmKcwVZszSyTRucygwyzTenHRon69evUe1
Version: 70, Address: VAfDvbsAhdSLFLm4iNKJwn454K32pQL4Ne
Version: 71, Address: VZzpuiATQouD4mu9jnedRuKrgpHyY2Me1w
Version: 72, Address: VyLRtpTk7zN5tD3EmCywv2beKKYvDmMwFV
Version: 73, Address: WNg2svm2qApxheBKndKGQ9sRwporvRgRpT
Version: 74, Address: Wn1ds34KYMHqX5KQp3eatH9DaL4ogbVZA4
Version: 75, Address: XBMEr9McFXkiLWTVqTyuNQR1CqKkMPMn6L
Version: 76, Address: XagqqFetxiDb9wbartKDrXgnqLah6SqX2S
Version: 77, Address: Xz2SpMxBftgTyNjftJeYLexaTqqdn8nnGv
Version: 78, Address: YPN3oUFUP59LnoskuiyrpnEN6M6aXT4ZJD
Version: 79, Address: YnhenaYm6FcDcF1qw9KBJuW9irMXAhFG9T
Version: 80, Address: ZC3Fmgr3oS56Rg9vxZeVo2mwMMcTvhxKzc
Version: 81, Address: ZbNrko9LWcXyF7J1yyypHA3iyrsQd7Yfms
Version: 82, Address: ZziTjuSdDnzr4YS71QK8mHKWcN8MMmMdi8
Version: 83, Address: aQ44j1juvyTisyaC2peTFQbJEsPJ6xNJsd
Version: 84, Address: aoPfi83Ce9vbhQiH4EymjXs5sNeEoGtEFB
Version: 85, Address: bCjGhELVMLPUWqrN5fK6Df8sVsuBWTKAVN
Version: 86, Address: bc4sgLdn4WrMLGzT75eQhnQf8PA8EpiYbA
Version: 87, Address: c1QUfSw4mhKE9i8Y8VyjBugSktR4tTNknH
Version: 88, Address: cQk5eZEMUsn6y9Gd9vK3g2xEPPg1e5m7n6
Version: 89, Address: cp5gdfXeC4EynaQiBLeNAAE21tvxGwsxK9
Version: 90, Address: dDRHcmpvuEhrc1YoCkygeHVoeQBtzThwNG
Version: 91, Address: dcktbt8DcRAjRSgtEBK18QmbGuSqmo3n8w
Version: 92, Address: e26VazRWKbdcEspyFbeKcY3NuQhnUNMBCG
Version: 93, Address: eRS6a6io2n6V4Jy4H1ye6fKAXuxj8Equm7
Version: 94, Address: epmhZD25jxZMsk79JSJxanaxARDfvXHFj8
Version: 95, Address: fE7JYKKNT92EhBFEKreH4urjnvUceJJVZJ
Version: 96, Address: fdSuXRcfAKV7WcPKMGybZ38XRRjZFwi6Qq
Version: 97, Address: g2nWWXuwsVwzL3XQNhJv3AQK3vzVzJ2DTZ
Version: 98, Address: gS87VeDEagQs9UfVQ7eEXHg6gSFSgoxxnJ
Version: 99, Address: gqTiUkWXHrsjxuoaRXyZ1QwtJwWPUVqsM2
Version: 100, Address: hEoKTrop13LcnLwfSxJsVYDfwSmLAp8Jq9
Version: 101, Address: he8vSy76iDoVbn5kUNeByfVTZx2GpdZxrX
Version: 102, Address: i3UXS5QPRQGNRDDqVnyWTnmFCTHDbzmsYk
Version: 103, Address: iSp8RBhg8ajFEeMvXDJpwv32pxYAJusoSs
Version: 104, Address: ir9jQHzxqmC845W1Yde9S3JpTTo72C9YY8
Version: 105, Address: jFVLPQJFYwezsWe6a3yTvAac5y43kgdYJD
Version: 106, Address: jepwNWbYG87sgwnBbUJnQHrPiUJzTmT4xi
Version: 107, Address: k4AYMctpyJakWNvGcte6tR8BLyZw8fDMYV
Version: 108, Address: kTW9LjC7gV3dKp4MeJyRNYPxyUpstdSbBh
Version: 109, Address: krqkKqVQPfWW9FCSfjJjrffkbz5pYzx3eg
Version: 110, Address: mGBMJwnh6qyNxgLXh9e4LnwYEVLmJ99DAh
Version: 111, Address: mfWxJ45yp2SFn7UciZyNpvDKrzbhyfKrY8
Version: 112, Address: n4rZHAPGXCu8bYchjzJhK3V7VVrefDJHw3
Version: 113, Address: nUCAGGgZEPN1QyknmQe1oAku817bQAFKFt
Version: 114, Address: nsXmFNyqwZptEQtsnpyLHJ2gkWNY5xk9Ad
Version: 115, Address: oGsNEVH8ekHm3r2xpFJemRJUP1dUrQ9Tgo
Version: 116, Address: ogCyDbaRMvkdsHB3qfdyFYaG1WtRY9uKob
Version: 117, Address: p5YaChsi57DWgiK8s5yHjfr3e29NBSr2Lr
Version: 118, Address: pUtBBpAznHgPW9TDtWJcDo7qGXQJtffELg
Version: 119, Address: ptDnAvUHVU9GKabJuvdvhvPcu2fFhbCHUk
Version: 120, Address: qHZPA2maCec991jPwLyFC3fQXXvCQKGhkU
Version: 121, Address: qgtz994ruq51xSsUxmJZgAwCA3B96uWX9n
Version: 122, Address: r6Eb8FN9d1Xtmt1ZzBdtAJCynYS5jpWCRq
Version: 123, Address: rVaC7MfSLBzmbK9f1byCeRUmR3h2VUPcwu
Version: 124, Address: rtuo6Txj3NTeQkHk32JX8YkZ3YwyE5uSav
Version: 125, Address: sJFQ5aG1kYvXEBRq4Sdqcg2Lg4CuwtaWNi
Version: 126, Address: shb14gZJTjPQ3cZv5ryA6oJ8JZTrevAQV4
Version: 127, Address: t6vc3nrbAurGs3i17HJUavZuw4ioKTiFCE
Version: 128, Address: tWGD2u9st6K9gUr68hdo53qhZZyk3JoQAF
Version: 129, Address: tubp21TAbGn2VuzBA7y7ZB7VC5EgmEm7bj
Version: 130, Address: uJwR17kTJTEuKM8GBYJS3JPGpaVdSr7CW1
Version: 131, Address: uiH1zE3k1dhn8nGMCxdkXRf4T5kaCdkd5L
Version: 132, Address: v7ccyLM2ipAexDQSENy51Yvr5b1WsV3aCb
Version: 133, Address: vWxDxSeKRzdXmeYXFoJPVgCdi6GTe9oudV
Version: 134, Address: vvHpwYwc9B6Qb5gcHDdhyoURLbXQKTGrr1
Version: 135, Address: wKdRvfEtrMZHQWphJdy2TvkCy6nM2sRvXd
Version: 136, Address: wiy2umYBZY2ADwxnL4JLx41zbc3HkExbah
Version: 137, Address: x8JdtsqUGiV33P6sMUdfSBHnE7JEUyxTaJ
Version: 138, Address: xXeEsz8kytwurpExNtxyvJZZrcZB9EDJbg
Version: 139, Address: xvyqs6S3h5QngFP3QKJJQRqMV7p7sd48cU
Version: 140, Address: yLKSrCjLQFsfVgX8RjdctZ797d54atPjnV
Version: 141, Address: yjf3qK2d7SLYK7fDT9xwNgNvk8L1K3VhGr
Version: 142, Address: z8zepRKupcoR8YoJUaJFroeiNdawygAmXb
Version: 143, Address: zYLFoXdCXoGHwywPVzdaLvvW18qtkfAi67
Version: 144, Address: zwfrndvVEyjAmR5UXQxtq4CHde6qUBPryp
Version: 145, Address: 21M1TmkDmxAC3arDZYqJDKBU5G9MnASQWhb
Version: 146, Address: 21kM4krX4fLevQHMeaFdXoJjrteciobSpTE
Version: 147, Address: 229gfjxpMNX7oDiVjbfxrHS1eX9sfZM4YhE
Version: 148, Address: 22Z2Gj57e5hag39dpd6JAmZHS9f8cJtPSwe
Version: 149, Address: 22xMsiBQvnt3YramueWdVFgZDnAPYyN9DAW
Version: 150, Address: 23MhUhHiDW4WRg1uzfvxojoq1QfeVjj7JTT
Version: 151, Address: 23m35gQ1WDEyJVT45hMJ8Dw6o3AuSRanfoW
Version: 152, Address: 24ANgfWJnvRSBJtCAimdSi4NafgAPAzJ9Vw
Version: 153, Address: 24ZiHecc5dbu48KLFkBxmCBeNJBRKrksH3x
Version: 154, Address: 24y3tdiuNLnMvwkULmcJ5gJv9vggGW3WGf6
Version: 155, Address: 25NPVcqCf3xpomBcRo2dQASBwZBwDEmoQUw
Version: 156, Address: 25mj6bwVwm9HgackWpSxieZTjBhC9zYcLj6
Version: 157, Address: 26B4hb3oEUKkZQ3tbqsJ38gjWpCT6iqRz2Z
Version: 158, Address: 26aQJaA6XBWDSDV2gsHdMcp1JShi3SJdwwr
Version: 159, Address: 26yjuZGPotggK2vAmthxg6wH65Cxz7aTu2i
Version: 160, Address: 27P5WYNh6bs9BrMJrv8Hzb4YshiDvkmsVmc
Version: 161, Address: 27nR7XUzPK3c4fnSwwYdK5BpfLDUsVoEtAk
Version: 162, Address: 28BkiWbHg2E4wVDb2xxxdZK6SxijpEQDWhR
Version: 163, Address: 28b6KVhaxjQXpJej7zPHx3SNEbDzkyYLg1c
Version: 164, Address: 28zRvUotFSazh85sD1odGXZe2DjFhfiagTM
Version: 165, Address: 29PmXTvBY9mTZwX1J3Dxb1guorEWeMXWj9J
Version: 166, Address: 29o78T2UprwvSkx9P4eHuVpBbUjmb7QsDZ8
Version: 167, Address: 2ACSjS8n7a8PKaPHU64dDywTP7F2Xnso73i
Version: 168, Address: 2AbnLRF5QHJrCPpRZ7UxYU4jAjkHUTriR6y
Version: 169, Address: 2B17wQMNgzVK5DFZe8uHrxBzxNFYRDevbkG
Version: 170, Address: 2BQTYPTfyhfmx2ghjAKdBSKGjzkoMyLjRXP
Version: 171, Address: 2Boo9NZyGQrEpr7qpBjxVvSYXdG4JanKBSc
Version: 172, Address: 2CD8kMgGZ82hhfYyuDAHpQZpKFmKFKjZ76n
Version: 173, Address: 2CcUMLnZqqDAaUz7zEad8th66tGaC2BS8XL
Version: 174, Address: 2D1oxKts8YPdTJRG5FzxTNpMtWmq8ogJg2U
Version: 175, Address: 2DR9ZK1ARFa6L7rQAHRHmrwdg9H65XQAzVH
Version: 176, Address: 2DpVAJ7ThxkZCwHYFJqd6M4uTmnM2BBxq4a
Version: 177, Address: 2EDpmHDkzfw25kigLLFxQqCBFQHbxs7sZ3Z
Version: 178, Address: 2EdANGL4HP7Uxa9pRMgHjKKT32nruaTZbks
Version: 179, Address: 2F2VyFSMa6HwqPaxWP6d3oSipfJ7rHoycY9
Version: 180, Address: 2FRqaEYeroUQiD26bQWxNHZzcHoNo3vqoah
Version: 181, Address: 2FqBBDex9Wesb2TEgRwHgmhGPvJdjn3VySa
Version: 182, Address: 2GEWnCmFSDqLTqtNmTMd1FpYBYotgR79eRB
Version: 183, Address: 2GdrPBsYiw1oLfKWrUmxKjwoyBK9d8FShkh
Version: 184, Address: 2H3BzAyr1eCGDUkewWCHeE55kopQZprrjuM
Version: 185, Address: 2HSXbA69JMNj6JBo2XccxiCMYSKfWZKfNiH
Version: 186, Address: 2HqsC9CSb4ZBy7cw7Z2xHCKdL4pvTJ1puEt
Version: 187, Address: 2JFCo8Jjsmjeqw45CaTHbgSu7hLBQ199hUo
Version: 188, Address: 2JeYQ7R3AUv7ikVDHbscvAaAuKqSLgmg8Ns
Version: 189, Address: 2K3t16XLTC6abZvMNdHxEehSgxLhHPEwWBp
Version: 190, Address: 2KTDc5ddjuH3UPMVTeiHZ8piUaqxE8efyQS
Version: 191, Address: 2KrZD4jw2cTWMCndYg8cscwzGDMDAr2Vfxi
Version: 192, Address: 2LFtp3rEKKdyE2DmdhYxC75G3qrU7XkhRnJ
Version: 193, Address: 2LfER2xXc2pS6qeuiiyHWbCXqUMj4F4VWmR
Version: 194, Address: 2M4a224ptjztyf63okPcq5Kod6rz119KvTG
Version: 195, Address: 2MTud1B8BTBMrUXBtmox9ZT5QjNEweTvJzd
Version: 196, Address: 2MsFDzHRUAMpjHxKyoEHU3aMCMsVtMqs1PV
Version: 197, Address: 2NGapyPiksYHc7PU4pecnXhcyzNkq6XkrCc
Version: 198, Address: 2NfvRxW23aikUvpc9r4x71ptmct1mnVAMDo
Version: 199, Address: 2P5G2wcKLHuDMkFkEsVHRVxAZFPGiWSK8Nu
Version: 200, Address: 2PUbdvicd15gEZgtKtucjz5SLstXfFA9hbp
Version: 201, Address: 2PswEupuuiG97P82QvKx4UCi8WPnbwLazty
Version: 202, Address: 2QHGqtwDCRSbzCZAVwkHNxKyv8u3YcQ1tMm
Version: 203, Address: 2QgcSt3WV8d4s1zJayAchSTFhmQJVN3br24
Version: 204, Address: 2R5x3s9omqoXjqRSfzax1vaXVPuZS5uBrjd
Version: 205, Address: 2RVHerG74Yyzceram21HLQhoH2QpNmpdhPA
Version: 206, Address: 2RtdFqNQMGATVUHir3Rcetq54ev5KUF7CKc
Version: 207, Address: 2SHxrpUhdyLvNHirw4qwyNxLrHRLGCEGteF
Version: 208, Address: 2ShJToazvgXPF7A126GHHs5cduvbCwVFSEJ
Version: 209, Address: 2T6e4nhJDPhr7vb977gccMCtRYRr9g78FVP
Version: 210, Address: 2TVyfmobW6tJzk2HC96wvqLADAw76KwWP8N
Version: 211, Address: 2TuKGkutnp4msZTRHAXHFKTRzoSN37VVAFw
Version: 212, Address: 2UJesk2C5XFEkNtZNBwcZoahnRwcynjeMTL
Version: 213, Address: 2UhzUj8VNERhdCKhTDMwtHhya4SsvS1w2ve
Version: 214, Address: 2V7L5iEnewcAW1kqYEnHCmqFMgx8sBBwaW1
Version: 215, Address: 2VWfghM5wendNqBydGCcXFxX9KTPovpTTp9
Version: 216, Address: 2Vv1HgTPEMy6Fed7iHcwqk5nvwxekeUY6LN
Version: 217, Address: 2WKLtfZgX59Z8U4FoK3HAED4iaTuhHLrQWV
Version: 218, Address: 2WigVefyonL21HVPtLTcUiLLWCyAe3793Hv
Version: 219, Address: 2X826dnH6VWUt6vXyMswoCTcHqURans3VbC
Version: 220, Address: 2XXMhctaPCgwkvMg4PJH7gat5TygXRGHNka
Version: 221, Address: 2XvhJbzsfusQdjnp9QicSAi9s6UwUDaHCTE
Version: 222, Address: 2YL2ub7Axd3sWZDxES8wkeqReizCQq5qeYS
Version: 223, Address: 2YjNWaDUFLELPNf6KTZH58xhSMVTMbuiQue
Version: 224, Address: 2Z8i7ZKmY3QoGC6EQUycPd5yDyziJGUP4yB
Version: 225, Address: 2ZY3iYS4pkbG91XNVWPwi7DF1cVyF1QSRQv
Version: 226, Address: 2ZwPKXYN7Tmj1pxWaXpH2bLWoF1EBjcvjdx
Version: 227, Address: 2aLivWefQAxBtePefZEcM5TnasWV8TZUAnk
Version: 228, Address: 2ak4XVkxgt8emTpnkaewfZb4NW1k58Y6soz
Version: 229, Address: 2b9Q8UsFybK7eHFvqc5Gz3iLA8X11qLGHho
Version: 230, Address: 2bYjjTyZGJVaX6h4vdVcJXqbwm2FxX3mXFt
Version: 231, Address: 2bx5LT5rZ1g3Pv8D1euwd1xsjPXWuJVAuAZ
Version: 232, Address: 2cMQwSC9qirWGjZM6gLGwW69X22mr23ajyL
Version: 233, Address: 2ckkYRJT8S2y9YzVBhkcFzDRJeY2nhTvtkr
Version: 234, Address: 2dA69QQkR9DS2NRdGjAwaULh6H3HjMykJZg
Version: 235, Address: 2dZRkPX3hrPtuBrmMkbGtxTxsuYYgAaFrXZ
Version: 236, Address: 2dxmMNdLzZaMn1HuSn1cDSbEfY3ocqKw2JE
Version: 237, Address: 2eN6xMjeHGkpepj3XoRwXviWTAZ4ZYzZUiZ
Version: 238, Address: 2emSZLqwZywHXeABcprGrQqnEo4KWDUtHZ8
Version: 239, Address: 2fAnAKxErh7kQTbKhrGcAty42RZaSyLdLhp
Version: 240, Address: 2fa7mK4Y9QJDHH2TnsgwVP6Kp44qPdoERF7
Version: 241, Address: 2fyTNJAqS7UgA6Tbsu7GosDbbga6LNxXpjp
Version: 242, Address: 2gNnyHH8ipf92utjxvXc8MLsPK5MH5Y2mh8
Version: 243, Address: 2gn8aGPS1XqbujKt3wwwSqU9AwacDmHzxwT
Version: 244, Address: 2hBUBFVjJF24nYm28yNGmKbQxa5sAaRbBRL
Version: 245, Address: 2haonEc2axCXfNCADznc5oigkCb87CsWT4q
Version: 246, Address: 2hz9PDiKsfNzYBdJK2CwQHqxXq6P3zvPiYL
Version: 247, Address: 2iPUzCpdANZTR14SQ3dGimyEKTbdzhc3wFX
Version: 248, Address: 2inpbBvvT5jvHpVaV53c3G6W766twP9Agiu
Version: 249, Address: 2jCACB3DjnvPAdvia6TwMkDmtic9t4jgUNN
Version: 250, Address: 2jbVoA9X2W6r3TMrf7tGgEM3gM7Qpkek3Bk
Version: 251, Address: 2jzqQ9FpKDHJvGnzk9JbziUKTycfmUfunZT
Version: 252, Address: 2kQB18N7bvTmo6E8qAiwKCbbFc7viDRKCkh
Version: 253, Address: 2koWc7UQtdeEfufGvC9Gdgis3EdBexf8fte
Version: 254, Address: 2mCrD6aiBLphYj6R1DZbxAr8ps8SbbVvNZX
Version: 255, Address: 2mcBp5h1U41ARYXZ6EywGeyQcVdhYP7dFob
Posted: 10/22/2014 3:40:57 AM

Online Gambling and Bitcoin

Now I know what you are thinking from the title. Isn't investing in Bitcoin basically a gamble as it is? Well, yes, yes it is. However, one day it may magically stabilize so that it doesn't fluctuate by more than $10 a day. Bitcoin would probably not be an ideal mechanism for online gambling even after this. Let's say we had some random online gambling site like What would happen if they started accepting bitcoin?

This in theory could sidestep all sorts of legal frameworks to explicitly forbid online gambling(with "real" money) in the US and other countries. Bitcoin is inherently not anonymous though! The US government at least has already started cracking down on people who buy drugs with bitcoins. It probably wouldn't be too hard to do the same with gambling sites. Bitcoin works by a ledger, which is publicly readable. If someone knows your bitcoin address, they can see what addresses you send money to. However, there are some crazy sketchy looking websites that "combine" transactions, obscuring where your money goes. One such site is bitlaunder (hey, I told you it sounded sketchy). With the way this happens, it makes it nearly impossible to trace the bitcoins to you.

But, aside from the non-anonymous issue, there are plenty of other issues. Using bitcoin for gambling would require confirmations. Once you require a confirmation, suddenly it takes around 10 minutes to get your money into the service. That's quite a let down. If they didn't do confirmation, they'd be vulnerable to double-spend attacks where people could gamble with already spent bitcoins... If they managed to do it fast enough, they could then "cash out", taking their winnings without ever having put a single penny at risk. This of course is not nearly as easy as it sounds, but it's possible.

In conclusion, bitcoin is awesome for some things. Probably not for gambling though(unless you mean "speculation")... at least not with the current version of bitcoin anyway.

Posted: 7/19/2013 12:06:26 AM