New Coins on the Block – XTRABYTES (XBY)

XTRABYTES is a crypto currency that uses a new consensus mechanism to create a decentralized, scalable network. In addition, it should be able to resist attacks from quantum computers by using SHA-512 encryption. However, the past of the project leaves some critical questions unanswered.

As written some time ago, in the New-Coins-on-the-Block series we would like to introduce some rather unknown coins alternately. In the last issue we had a critical look at U.Cash. Today the rather unknown crypto currency XTRABYTES will be considered. This crypto currency exists since April last year and could show an increase of 4.000 % between December and January. Although the price has fallen dramatically again since then, at 0.16 Euro it is still 800 % above the price before the rally.

XTRABYTES – Three networks for one Bitcoin secret

XTRABYTES sees itself as a Bitcoin secret plafform with a modular structure and a new consensus mechanism like this: Bitcoin Secret Review 2018 » Full Scam Check The goal of XTRABYTES is the development of a completely decentralized platform. Existing blockchain-based systems are criticized for offering many possibilities for centralization. Centralization of the developers, within the framework of consensus mechanisms or with regard to the centralization of ownership are mentioned here as examples.

Another focus will be on abolishing proof of work. The basis for the criticism of proof of work is the high demand for energy. To achieve this, a new consensus mechanism called Proof of Signature or PoSig is introduced. In this, real and virtual node networks are compared with each other. These networks are the STATIC network, the VITALS network and the PULSE network:

STATIC nodes (Services Transactions and Trusted in Control) are responsible for the security, consensus and governance of the XTRABYTES block chain. They must sign each block. A consensus, i.e. proof of signature, is reached when all STATIC nodes have provided blocks with the same signatures. If one of the STATIC nodes deviates from the statements of the other nodes, it is put on a blacklist by the other nodes if it does not want to correct its block. Since they are the backbone of the entire network, they are remunerated by payment of the fees incurred in the system. A distinction is made between different levels, each of which has a different share of the fees.
VITALS stands for Virtual Information Transmissions aligning STATICS. It is an internal network of virtual nodes, which connects the STATIC nodes and is a kind of VPN access to the STATIC network. It is the network that enables undisturbed interaction of the STATIC nodes.

The cryptosoft network (Ping Unified Ledger Synchronization Equalizer) is a kind of signal generator:

After an initiated transaction, a cryptosoft signal is sent to all nodes so that they know that there will soon be a transaction to process according to onlinebetrug. Due to the high processing speed of the transactions, synchronization errors of individual STATIC nodes can occur. This is detected and announced by PULSE. In this sense PULSE is a kind of governance for the VITALS network and ensures the communication between the nodes.

In summary, STATIC Nodes actually create and verify the new blocks, VITALS Nodes maintain the consensus and the Pulse network is the basic communication layer.

Another special feature of the network is the use of SHA-512 encryption, which is expected to provide encryption that cannot be cracked by quantum computers for the foreseeable future. Here the modular structure of XTRABYTES should also be used to be able to update the encryption mechanism quickly in case of doubt.

University of Qatar: Bitcoin’s environmental impact calls for government intervention

Discussions about the environmental impact and sustainability of Bitcoin have been going on for a long time. A scientific article by the University of Qatar has now come to the conclusion that government intervention will be necessary in the future due to high energy consumption. Thus appropriate taxes could lower its demand. In addition, incentives for alternative blockchain technologies and new consensus modes are needed. While these are being used more and more, the Association of Research Centres for Energy Economics emphasises that the energy problem of the blockchain is „solvable“.

The growing energy demand in the cryptosector endangers the environment and the sustainable survival on earth. This is the basis on which Jon Truby, scientist at Qatar University, argues in his recent research.

His cryptosoft thesis:

By consuming huge amounts of energy every year, Bitcoin undermines global efforts against climate change and Parisian climate tobacco. This overshadows the benefits of the cryptosoft blockchain.

„The huge trust benefits for transaction security are eclipsed by Bitcoin’s deliberate resource-intensive design. These verification processes now threaten the climate on which we depend for our survival.“

Crypto trader response: Limiting demand

State intervention and fiscal compensation are needed to promote crypto trader alternatives and reduce demand for Bitcoin. „The applications of the technology (such as digital currencies or smart contracts) can be targeted to limit the crypto trader demand for the development and use of particularly energy-intensive technologies and to promote sustainable alternatives, the jurist is sure.

According to Truby, viable legal options represent internationally coordinated taxes on prospecting processes, transkations or the ownership of Bitcoin.

In March, the G20 ministers had already decided to introduce common tax standards. Their focus, however, is on avoiding money laundering and the criminal use of crypto currencies – not their possession and use per se.

This means that there are already links in the tax handling of Bitcoin. However, it is questionable whether environmentally-centred initiatives such as those brought into play by Truby will soon be implemented, especially in light of the hesitant climate protection policy.

Acceptance of crypto currencies: Do we (still) need a killer app?

Between killer app and skepticism: What it really needs for crypto-acceptance.

With articles it is sometimes like with fermentation processes: something must ferment for it to be finished. Whether it’s good, as with wines, Cole-Slaw or Pruno, man’s taste is (s)a kingdom of heaven.

Nevertheless – is that Bitcoin loophole enough as an argument?

Anyway, I’ve been meditating on this article about the Bitcoin loophole for quite some time. One hears a lot about a „killer app“, which it would need for the acceptance of crypto currencies. The grandiose app, Facebook, Google, Uber and iTunes Music Store, explained on onlinebetrug which would disrupt the monetary system.

And so grandiose things are not only planned, but also realized. Many great things have come into being; thanks to Bitwala and other companies we can pay at normal tills with Bitcoin and other crypto currencies, thanks to various companies e-commerce providers can easily accept Bitcoin and other crypto currencies, and thanks to Bitwage I can even convert my salary – or part of it – directly to Bitcoin.

So I can receive Bitcoin as a salary, pay Bitcoin at the cash register with Bitcoin and as a company I can stick a „Bitcoin accepted here“ banner on the website or shop door with little effort and no lies. All this is great, so that one can only thank companies like the ones mentioned above and many others.

The question that comes to my mind is „what else does it need? Do we really (still) need a killer app that dramatically lowers the learning curve? Is it the (German) people who are simply not innovative or willing to take risks enough for Bitcoin and other digital currencies?

Why should I use the news spy?

Here a short sway from my life: I was recently sitting in a lecture that Bitcoin entrepreneurs wanted to explain. I personally – maybe not a Bitcoin maximumist, but an ethusiast who sacrifices a lot of his free time for the blockchain – liked the lecture about the news spy by onlinebetrug quite well. We talked about the news spy financial transactions without a middleman, about transparency and pseudonymity, about instantaneous transactions (if we ignore the confirmations) – all right!

One of the first questions came from a consultant next to me who supports medium-sized companies in innovative projects. This question was simply why a medium-sized company should accept or pay Bitcoin payments.

The answer was not wrong at all: transactions worldwide, even in the direction of developing and emerging countries, are definitely something worthwhile. Such transactions, which can be realized independently of the status of the respective banks, were something for medium-sized enterprises with business relations to Greece at the time of the crisis there, which helped them to save money from the chaos there!

What is an argument for the use of Bitcoin, DASH and other crypto currencies, whose use case is primarily that of money, for Otto-Normal consumers? Or even more strictly: what is also an argument for the use of Bitcoin as normal money for the traders, miners, masternode operators and HODLers among us?

I don’t know about you, but in bullish times I have trouble spending my saved Bitcoin on a burger or coffee. Yes, I am a stingy, profit-oriented bag!

But I think that I am not alone in this. In this respect, even for us enthusiasts who have invested large sums in Bitcoin, the question ultimately arises even more than for normal Otto consumers.

Sure, I can invest in Bitcoin and other digital currencies. After all, Bitcoin is the digital gold and cases like Venezuela show that it has its ways. But this is ultimately not a use as money, but as a hedge.

Honey catches flies – money catches the payer
How can you convince people of something? A classic market launch strategy is to give people who buy early a discount. In some cases, so-called field testers even give the product free of charge, since the knowledge gained through this field test is extremely important for the product developer. So one hand washes the other.

This mutual benefit can, of course, be transferred to Bitcoin and its associates: I assume that the average trader has calculated his margin with a certain profit – anything else would be a disaster. In the context of this margin you can think about discounts for payments with Bitcoin.

The idea is of course not new – only recently we wrote about Amazon vouchers with 15% discount – but interestingly enough I read more and more „Bitcoin accepted here“, s

Bitmain works on new R4 device for Hobbyminer

The mining hardware manufacturer Bitmain wants to set new standards in Bitcoin Mining. With a new Bitcoin miner, the manufacturer wants to explicitly address hobby miners who use it to feed their computing power into the Bitcoin network.

Bitcoin revolution: No longer profitable?

Mining is an essential component of the Bitcoin system and onlinebetrug found out that it is necessary to keep it alive. Anyone who already fed computing power into the system in 2009 was even able to earn money with a computer from home. Especially when he held back the earned Bitcoin revolution for a while and then sold them for several hundred euros.

Not long ago it was also a realistic scenario for private users to mine Bitcoins with USB miners or small rigs from home. Gradually, however, larger companies have concentrated and economies of scale have worsened, if not eradicated, the profitability of small private subscribers. Mining Bitcoins as a private individual with small devices from home is no longer as profitable as it was three years ago. Some private users therefore rely on other ways of earning money with cloudmining, for example.

Bitcoin revolution would like to bring the mining back into the living room

In an e-mail to CoinDesk, the manufacturer promised that the new R4 rig would be the second strongest miner in the world. For private individuals it should be possible again by an optimized current consumption to earn profits with the Mining from at home. A new power supply has also been developed for this Bitcoin revolution purpose to support efficiency.

Recently, the Antminer S9 achieved great popularity. Although it had the same efficiency, it brought with it some problems: As some users report, the device’s fans became so noisy when running at full power that operation in the home was impossible and some customers used the garage as their location. The R4 Mining Rig is therefore equipped with a new fan that is supposed to be as quiet as a split air conditioning system, explains Bitmain. A maximum volume of 52dB is to be produced, roughly comparable to a normal conversation between two people.

Dates and prices of the device
With the help of 16nm chips, the R4 is supposed to deliver an output of 8.6 TH/s. According to the manufacturer, it consumes 845W at an efficiency of 0.1 J/GH.

Bitmain will probably hold back with the prices until the sales start of the device on Monday. Screenshots that have appeared on the net and show the Miner on the Bitmain website with a price are estimated at 1000 dollars. For the APW5 power supply, another $300 would go to customers.

Opinion of the author (Max):

While a few years ago the calculation could be carried out very generously and changes with regard to the Mining Difficulty could be estimated relatively accurately, Mining has developed into a business with a tough calculation. Lower margins make it more and more unattractive for private users to take the risk and hope for a break-even, which is usually predicted to be reached in more than a year. For Bitcoin users, this is a perceived decade, so to speak.

(In an example calculation with an electricity price of $0.12 per kilowatt hour and hardware costs of 1300USD the magazine CoinDesk comes to a forecasted break-even point in 391 days with unchanged Bitcoin price and without considering the mining pool fees. It remains to be considered therefore still whether the enterprise of the R4 is worthwhile itself above all for German-speaking users, because the energy prices are here in Germany clearly higher.

Pay tickets with crypto

The government’s partially restrictive measures against crypto currencies have not harmed the crypto economy in Russia. The crypto market also developed off the radar. Now, several more crypto enthusiasts are probably travelling to Russia as guests – after all, the crypto hot spots Japan and South Korea are represented with their teams at the World Cup.

How convenient that there are also possibilities to pay tickets for games with crypto currencies. Although the tickets are not available at the official sales outlets with Bitcoin, Ether and Co., they can be purchased through third-party providers such as the Wirex and Epayments platforms. Wirex issues Visa Debitcards, which allow Bitcoin payments as well as Euro and US dollar payments. Epayments also offers cards that can be filled with Bitcoin, Ethereum, Litecoin and Bitcoin Cash.

Accommodation and meals in Russia – Bitcoin or Ether are gladly taken

If your team’s match takes place in the Russian exclave of Kaliningrad on the Baltic Sea, fans can also pay their hotel bills with crypto currencies. The hotel group Malina Apartments cooperates with the Russian Crypto-Startup Free-Kassa. Payment in 14 different crypto currencies is possible via the FKWallet.

If you also want to get to know the Russian pub culture without rolling the ruble, you also have an option. In Moscow, St. Petersburg and many other large cities are the Killfish Bars, in which one can pay his beer in Bitcoin. The chain has been offering payments in crypto currencies since 2013 and is thus one of the pioneers of crypto adaptation in Russia.

The World Cup also takes place on the Blockchain

After all, the World Cup also runs on the Blockchain – in the form of a betting game. CryptoCup is a prediction game based on the Ethereum blockchain. Here, crypto and football enthusiasts can make predictions about the games. The players create their own crypto collectables. Individual ERC-721 tokens are used for this – the same standard on which CryptoKitties are based. If the forecasts are stored in the tokens and the tournament begins, the tokens can be traded with each other.

So crypto currencies play their own role in the history of this World Cup. It is not only crypto fans who are curious to see whether crypto currencies can continue to assert themselves as a means of payment during the World Cup.

Tobias SchmidtTobias Schmidt has been an editor in the BTC-ECHO team since August 2017. His area of expertise in the crypto area is the many different applications in politics, economy and society.