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Smilo explained — 51% attacks

Smilo explained — 51% attacks
In this article of Smilo Explained we are going to explain more about the infamous 51% attacks of the blockchain space. We decided to create a separate article on this matter since it is one of the most impactful attacks in the blockchain space and very topical over the last few weeks with several attacks happening.
https://preview.redd.it/lsnwjlmr7o221.png?width=1920&format=png&auto=webp&s=aad5525a6181288287829d89d87feb416f028f31
Some blockchain projects are more prone to 51% attacks than others, this is especially true for blockchains using the popular Proof of Work (PoW) consensus mechanism. This PoW algorithm is an economic measure to deter various attacks on the network by requiring some work from the service requester, usually in the form of processing time by a computer. However, it is possible to attack PoW blockchains when you control more than 51% of the total hashing power.
Considering this, smaller blockchains with a relatively low total hashing power combined with the PoW consensus mechanism could easily fall victim to this attack. Take Bitcoin as an example, in the first few years when Bitcoin (and blockchain) was less popular, it was relatively easy to buy more than 51% of the total hashing power and attack the network. However, due to the fact that no individual really paid attention to this flaw, Bitcoin was able to slowly grow a considerable amount of relatively decentralised hashing power over time, thus securing the network.
Nowadays, this flaw is quite well-known and due to this there is a rising amount of attackers who try to better themselves by attacking other blockchains. There are even websites giving rough estimates of the costs involved in creating a 51% attack such as https://www.crypto51.app/.
Let’s take a closer look at some of the projects which have suffered from a 51% attack lately.

Vertcoin

The first specific case of a 51% attack which we are going to discuss is the one that took place this week, the 2nd of december, on the cryptocurrency called Vertcoin. During the attack, the attackers tried to double spend the currency to better themselves.
Coinbase engineer Mark Nesbitt stated that the double spending amounted could have resulted to over a $100,000 loss on the Vertcoin network.
“Vertcoin (VTC) experienced 22 deep chain reorganizations, 15 of which included double spends of VTC. We estimate that these attacks could have resulted in theft of over $100,000. The largest reorganization was over 300 blocks deep.”
According to the Crypto 51 webapp, the attack would only cost about 125 dollar per hour at the time of the attack. With an average block time of 2m and 40s this means the attack took approximately 14 hours and would only cost about 1750 dollars.

AurumCoin

A few weeks ago, AurumCoin also fell victim to a 51% attack. During the attack, one of the few cryptocurrency exchanges who had listed AurumCoin, Cryptopia, lost more than 15 million Aurum coins (which was worth over half a million USD at the time of the attack). AurumCoin claims not to be responsible for the attack and they shifted the blame to Cryptopia, insisting it was hacked. Cryptopia, on the other hand, has not yet acknowledged that they have been hacked.

Easy prey

With a market cap of around 10 million USD, AurumCoin was definitely one of the easier targets. The attacker sent over 500.000 USD worth of AurumCoin to cryptopia to exchange them for another cryptocurrency. Once this transaction went through, the attacker allegedly used more than 51% of the hashing power to reverse the transaction as though it never really happened.
Besides, the last commit on AurumCoin’s Github originates from 2015, which indicates that the developers might have abandoned their project. Moreover, having an average hashrate of just about 80PH/s didn’t help them either. For about 800 USD per hour, one can easily rent more than enough mining power on NiceHash to attack AurumCoin’s network.

Confirmations

According to various reports, it seems like AurumCoin needed twenty confirmations at the time of the attack to send or receive any funds. So, could Cryptopia be responsible for this hack? Well, Cryptopia stated that they do not have any control over the time in which these confirmations are completed. Meaning that, Cryptopia does not seem to have any influence on AurumCoin transactions.
According to the exchange, they are unable to reverse or alter these kind of confirmations, and thus the transactions. In their support section they make the following statement;
“Cryptopia does not perform these ‘Confirmations’ or have any control over the time in which these Confirmations are completed. The Confirmations are completed by miners on the Blockchain. Transactions with higher fees will are far more likely to be added to a block first.”
AurumCoin’s case is just one of the examples which shows the negative consequences for both the coin and the exchange hosting them.

Bitcoin Gold

Bitcoin Gold suffered from a similar attack, though on a larger scale. An amount of 12.239 BTG was deposited to an account on the crypto exchange Bittrex, which was according to the online publication Bitcoinist around 18 million USD at the time of the attack.

Technical background

To go more in depth on how the attacker proceeded with his attack, the following information was posted by BitcoinGold as a statement on their website.
“The attackers address is known by this transaction: ee798dd31beda909c9ca7f843bc58b48dfb40b0f6db83ccd10e892e9c3154ce7 (Originally marked as Confirmed, now marked as Unconfirmed)
The deposit was made as part of this block #529022(Originally marked as mainchain, now marked as Orphaned. It was mined by honest miners.) and was confirmed over the course of nearly six hours on mainchain with 21 additional blocks mined, up to and including this block #529043. (Originally marked as mainchain, now marked as Orphaned. It was mined by honest miners.)
Some time after the 20th block, which satisfied the 20-confirmation requirement for Bittrex, the attacker was able to trade their BTG on Bittrex and withdraw other crypto.
The attacker then released 23 (or more) secretly mined blocks to the mainchain, superseding the existing 22 blocks, and replacing their previous transfer of 12.239 BTG to Bittrex with a transfer of those same 12.239 BTG to themselves.
Below is the new transaction (double-spend) of the original 12239 BTG, sent to their own address instead of Bittrex: 8b8ad1deb88c9b9e36c62e96ff52833d4ca1632076b1092a5848de788181aaaf
It was included in this block #529022, which was first mined by the attackers in secret and not broadcast to the network until nearly 6 hours later. When it was finally broadcast along with 22 or more other secretly-mined blocks, for a total of over 23 blocks, it established the “longest chain” and took over as mainchain, causing the previously seen blocks to become “Orphaned.”
Bittrex delisted Bitcoin Gold shortly afterwards. As a result Bitcoin Gold was forced to upgrade their proof of work to make it, according to them, a less attractive and harder to attack network, even though the possibility to become victim of such an attack still lingers. Besides, they advised all exchanges to raise their confirmation requirements to give time to react on unusually large deposits of BTG — the double-spend attacks were clear outliers in size.

Expenses for the attack

Husam Abboud, a managing partner and co-founder at Brazil-based PDB Capital, has calculated that an average investment of 200.000 USD respectively is necessary for a 51% attack on bitcoin gold.
“Bitcoin Gold, a much smaller network (1/20 the size of Bitcoin Cash network), since the fork, has switched to become ASIC resistant hashing with Equihash algorithm, — same as zCash — It is currently more secure against 51% attack from Bitcoin miners, but vulnerable to attacks from Zcash and other Equihash miners.”
As researched by Investopedia, if for example a zCash miner with +8% of Nethash would switch to mine BitcoinGold, he is already at +51% BTG nethash. This would brings the cost of 51% attack on BTG to 580 ZEC/day which equals around 200.000 USD

A common attack

Similar situations occurred this year with Monacoin and Verge among others, showing that these attacks are not uncommon. Counter measures are being taken by exchanges and networks alike such as increasing the number of confirmations required for making a transaction and ASIC resistant networks. Nevertheless, exchanges have very few defences to this attack, as no number of confirmations can make receiving deposits of the network under attack fully safe, when the attacker has over 51% of the hashing power. Some of the measures might reduce the risk of such an attack, though seem not as efficient as hoped, as even networks that have implemented them, are still being attacked.
‘As long as exchanges are willing to provide customers with assets in response to the deposit of a reversible currency, there’s no reason for attackers to stop this behavior. Expect to see more of these attacks.
Exchanges that support these assets will continue to suffer losses, with the ultimate result that exchanges will be forced to delist these assets. In such an environment, it’s hard to find a compelling argument for why these assets should have value.’
Mark Nesbitt

Smilo’s solution

The Smilo network solves this problem with its Smilo BFT+ consensus mechanism. This consensus mechanism circumvents 51% attacks by having one valid blockchain and one valid block created by one chosen speaker. Next to 51% attacks, Smilo’s consensus is also far less vulnerable to a number of other attacks, making it a saver option for both users and exchanges.
Smilo will always require more than 66% consensus with the Smilo BFT+ algorithm, a node will never add a block to his chain when this block has been declined. Moreover, even when more than 66% of the nodes approve a block, but Node A declined the block, Node A will not add the block to his chain, nor will the follow up blocks add this block to the chain.
All Smilo Clients (like the API, full wallets, etcetera) are able to verify both blocks and transactions, providing a two-factor authentication for light clients. Clients can validate if it is connected to “Good actors” or “Bad actors”, depending on the blockchain hash, and therefore decide to send a transaction to a Good or Bad actor.
Since Smilo BFT+ Blacklists ‘Bad actors’, each Bad Actor will become an orphan/bad chain (fork). Besides, considering the fact you need 10.000 Smilo to act as a node, an attacking entity needs to own an immense amount of Smilo to start with, which makes it impractical as it will prove a great financial loss for the attacker. This makes Smilo 99.9% secure against sibling attacks.
For example: 250 nodes are securing the network: - 84 nodes are ok! - 166 nodes are bad! 166 * 10.000 = 1.66 million Smilo (>66% of the actors)
Even if the attacker pulls it off to create a bad block, the 84 good nodes will not add this block (because it is invalid). The next speaker in line (or the third, or the fourth, or the fifth) will create a correct block which will be added to the nodes. Since our full-clients validate nodes and blocks by themselves, they will not send any transactions to the wrong fork. This results in a fork which will only survive for as long as the bad actors are turned on.
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Use the BTCP full Node on a Ubuntu 16.04 LTS from Terminal

In this post I want to show some use of the CLI BTCP wallet from linux terminal.
DISCLAIMER:
First of all, use this tutorial with small amount of BTCP, for example i used 0,01 BTCP, until you feel confortable with commands. An error can happen easily and as result you can loose your money. Be careful! Do it at your risk!
I consider you have already installed the wallet following this instructions:
https://github.com/BTCPrivate/bitcoinprivate
I use Ubuntu 16.04 LTS 64bit, but commands are similar for the windows client.
Open a terminal from your Ubuntu Desktop:
[email protected]:~$ 
type:
[email protected]:~$ ./BitcoinPrivate/src/btcpd --daemon 
you should see the message:
BTCP server starting 
This means the wallet is running in daemon mode.
to stop the node just typing:
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli stop 
Answer:
BTCP server stopping 
You can also run the wallet in terminal, is nice to see it, let's try:
 [email protected]:~$ ./BitcoinPrivate/src/btcpd 
You will see the BTCP logo in text mode and the following info:
Thank you for running a Bitcoin Private node! You're strengthening the network and contributing to a social good. To ensure you are fully protecting your privacy when running BTCP, see . Block height | 340079 Connections | 8 Network solution rate | 8359387 Sol/s You are currently not mining. To enable mining, add 'gen=1' to your btcprivate.conf and restart. Since starting this node 1 minutes, 33 seconds ago: - You have validated 695 transactions! [Press Ctrl+C to exit] [Set 'showmetrics=0' to hide] 
See, you can also mine using the wallet! Nice! Just add gen=1 in the file btcprivate.conf. Probably you will never mine a coin, but still you to strenght the net, so, you can try if you want, then disable it when done:
Press CTRL and C to stop the server, then restart the server in daemon mode otherwhise you have to open a new terminal.
Let's find btcprivate.conf and other useful files:
[email protected]:~$ cd .btcprivate [email protected]:~/.btcprivate$ ls 
Answer:
blocks btcprivate.conf chainstate db.log debug.log fee_estimates.dat peers.dat wallet.dat 
You see here: btcprivate.conf and wallet.dat
Edit configuration file:
[email protected]:~/.btcprivate$ pico btcprivate.conf 
add gen=1 if you want to mine, then CTRL X and Y to save.
Restart the wallet....and....
Block height | 340091 Connections | 8 Network solution rate | 8211926 Sol/s Local solution rate | 0.0075 Sol/s Since starting this node 8 minutes, 5 seconds ago: - You have validated 684 transactions! - You have completed 1 Equihash solver runs. You are mining with the default solver on 1 threads. 
Congratulations! You are mining!
Now have a look to the wallet.dat file:
Nb: wallet.dat is your wallet!! If you delete it you will loose all your money!!!
wallet.dat is not encrypted, so, if you want to backup it i do as follows:
[email protected]:~/.btcprivate$ cp wallet.dat home/btcp/Desktop/wallet_btcp_back.dat 
Now you will find the wallet on your desktop. Zip it with an AES256 encryption and a strong password. Test if it works properly: extract it again and copy it in the directory, but before make an other copy of the wallet.dat file. Beware! I almost deleted the file once!
Nb: wallet.dat is your wallet!! If you delete it you will loose all your money!!!
Go back to your home directory, now, we want to play with our wallet:
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli help 
if everything is running properly, you will see a list of commands like this:
z_exportwallet "filename" z_getbalance "address" ( minconf ) z_getnewaddress z_getoperationresult (["operationid", ... ]) z_getoperationstatus (["operationid", ... ]) z_gettotalbalance ( minconf ) z_importkey "zkey" ( rescan startHeight ) z_importwallet "filename" z_listaddresses z_listoperationids z_listreceivedbyaddress "address" ( minconf ) z_sendmany "fromaddress" [{"address":... ,"amount":...},...] ( minconf ) ( fee ) z_shieldcoinbase "fromaddress" "tozaddress" ( fee ) zcbenchmark benchmarktype samplecount zcrawjoinsplit rawtx inputs outputs vpub_old vpub_new zcrawkeygen zcrawreceive zcsecretkey encryptednote zcsamplejoinsplit [email protected]:~$ 
Nice! Wallet is running properly. Now try an other command: getinfo
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli getinfo 
Answer:
{ "version": 1001251, "protocolversion": 180004, "walletversion": 60000, "balance": 0.00000000, "blocks": 340074, "timeoffset": 0, "connections": 8, "proxy": "", "difficulty": 167290.7158221716, "testnet": false, "keypoololdest": 1528833903, "keypoolsize": 101, "paytxfee": 0.00000000, "relayfee": 0.00000100, "errors": "" } [email protected]:~$ 
You see some useful info about your wallet/node:
blocks is the block heights, in this case is synced with the network. If not the number would be lower.
The wallet is connected to other 8 nodes, the balance is 0.00 BTCP
An other info command can be getblockchaininfo:
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli getblockchaininfo 
Answer:
{ "chain": "main", "blocks": 340074, "headers": 340074, "bestblockhash": "0000000145c0011d8e914f4ba68d1443c7ae0dd15bdf0bc300994dd5282710aa", "difficulty": 165971.1181999981, "verificationprogress": 0.9999992572690658, "chainwork": "0000000000000000000000000000000000000000000000000002e8314e4484da", "pruned": false, "commitments": 663480, 
we see syncing is almost finished:
"verificationprogress": 0.9999992572690658, (99,99999%)
Now test the wallet with command getwalletinfo
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli getwalletinfo 
Answer:
{ "walletversion": 60000, "balance": 0.00000000, "unconfirmed_balance": 0.00000000, "immature_balance": 0.00000000, "txcount": 0, "keypoololdest": 1528833903, "keypoolsize": 101, "paytxfee": 0.00000000 } [email protected]:~$ 
Now we want to send some btcp to this wallet. First we need an address, get one using getnewaddress:
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli getnewaddress 
Answer:
b1Cabjwvcce7N8ea9Gxxxxxxxxxxxxxxxx [email protected]:~$ 
Send at this address some BTCP, i sent 0.01 for testing purpose using your ledger, or your wallet, then check if the transaction is done:
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli getwalletinfo 
Answer:
{ "walletversion": 60000, "balance": 0.00000000, "unconfirmed_balance": 0.01000000, "immature_balance": 0.00000000, "txcount": 1, "keypoololdest": 1528833903, "keypoolsize": 101, "paytxfee": 0.00000000 } 
Done! Unconfirmed balance is 0.01! Just wait some confirmations.
after a while:
"walletversion": 60000, "balance": 0.01000000, "unconfirmed_balance": 0.00000000, "immature_balance": 0.00000000, "txcount": 1, "keypoololdest": 1528833903, "keypoolsize": 101, "paytxfee": 0.00000000 
Now send the coins to a new address. I am using this command:
sendtoaddress "btcpaddress" amount ( "comment" "comment-to" subtractfeefromamount )
subtractfeefromamount parameter can be true or false
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli sendtoaddress "b1Nb42GoK9kmsxxxxxxxxxxxxx" 0.01 "" "" true 
Answer:
2c5d3d1a3b5eec414b721d3817487f53c5eebxxxxxxxxxxxxxxx [email protected]:~$ 
Now check the wallet:
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli getwalletinfo 
Answer:
{ "walletversion": 60000, "balance": 0.00999808, "unconfirmed_balance": 0.00000000, "immature_balance": 0.00000000, "txcount": 2, "keypoololdest": 1528833903, "keypoolsize": 101, "paytxfee": 0.00000000 } 
I sent BTCP to the same wallet, so now i have less BTCP because of the fees.
try more commands:
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli listreceivedbyaddress 
Answer:
[ { "address": "b1Ep2wi2tUnKf433Vaxxxxxxxxxxxx", "account": "", "amount": 0.01000000, "confirmations": 6, "txids": [ "833533440a13c09fda6e90d0c5xxxxxxxxxxxxxxxxxxxxxxxxxxxxx" ] }, { "address": "b1Nb42GoK9kmsVZ9KPxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx", "account": "", "amount": 0.00999808, "confirmations": 1, "txids": [ "2c5d3d1a3b5eec414b721d3817487f53c5xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx" ] } 
This is the list of all used addresses.
Now find the money and the address where they are: use listunspent
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli listunspent 
Answer:
[ { "txid": "2c5d3d1a3b5eec414b721d381748xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx", "vout": 0, "generated": false, "address": "b1Nb42GoK9kxxxxxxxxxxxxxx", "account": "", "scriptPubKey": "76a914c6bdf3bc8aedxxxxxxxxxxxxxxxxxx", "amount": 0.00999808, "confirmations": 6, "spendable": true 
Well done.
Other useful commands can be: dumpprivkey to extract the private key from an address
Be careful! Exposing your private keys will end in loosing your money
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli dumpprivkey b1Ep2wi2tUnxxxxxxxxxxx 
Obtaining the pvt key:
Kz29e62Bmxxxxxxxxxxxxxxxxxxxxxxx 
And now, swipe the private key using the command: importprivkey "btcpprivkey" ( "label" rescan )
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli importprivkey "Kz29e62Bmxxxxxxxxxxxxxxxxxxxxx" "" true 
Let's do a shielded transaction!
first, you must have a z_address:
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli z_getnewaddress 
Answer:
zkEvCiVwgHb3NFi2ee9HGPjno2xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 
Check balaces, with also z_addres:
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli z_gettotalbalance 
Answer:
{ "transparent": "0.00999808", "private": "0.00", "total": "0.00999808" } 
Now send some BTCP to the z_address. First, check where BTCP are:
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli listunspent 
Output:
[ { "txid": "72f568d1ed51524b69f1xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx", "vout": 0, "generated": false, "address": "b1LDhxBJxxxxxxxxxxxxxxxxxxxxxx", "scriptPubKey": "76axxxxxxxxxxxxxxxxxxxxxxxxxxxxxxe088xx", "amount": 0.00889808, "confirmations": 556, "spendable": true } ] 
Now, sent a little transparent amount to the shielded address we got before:
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli z_sendmany "b1LDhxBJxxxxxxxxxxxxxxxxxxxxxx" "[{\"amount\":0.001, \"address\":\"zkEvCiVwgHb3xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx\"}]" 
Output:
opid-xxxxxxx-36c4-xxxx-beb2-xxxxxxxxxxxx 
Now your PC will work a while, it's CPU consuming...so...check:
[email protected]:~$ ./BitcoinPrivate/src/btcp-cli z_getoperationresult 
until you receive the answer:
[ { "id": "opid-xxxxxx-xxxxx-4a5d-beb2-xxxxxxxxxx", "status": "success", "creation_time": 1529426885, "result": { "txid": "f87e8d5e96a8a0xxxxxxxxxxxxxxx" }, "execution_secs": 216.686332567, "method": "z_sendmany", "params": { "fromaddress": "b1LDhxxxxxxxxxxx", "amounts": [ { "amount": 0.001, "address": "zkEvCiVwgHb3NFxxxxxxxxxxxxxxxxxxR" } ], "minconf": 1, "fee": 0.0001 } } ] 
Done! On my old PC it took 216.68 seconds!
Next will be a reverse operation, from Shielded address to transparent address. See you soon....
Play with your full node wallet and have fun.
Remember: these commands are almost the same in all the bitcoin based coins, so you also learnt how to use many other wallets!
submitted by xivan71 to u/xivan71 [link] [comments]

[Discussion] Buying and Selling CSGO Items with Bitcoin

Note: flair is not my account, this is my profile
Recently I have gotten a lot of questions about Bitcoin as an option for the CSGO trading community. I decided to piece together some of the points I have made to people into a little guide of sorts. Any questions or suggestions for improvement just ask away, as this is an early draft(v2 dec27).
Don't want to read this guide? Then just Get bitcoin TODAY!
Introduction: What is Bitcoin (BTC)
Bitcoin is a cryptocurrency which allows you to transfer money internationally almost instantly with no fees* and without any chargeback risk.
Aside from domestic bank transfers and Western Union, there is no other way to transfer money without any reversal or chargeback risk whatsoever. This makes Bitcoin an incredibly important tool for merchants of digital goods like CSGO items to receive payment without any concern of accounting for scammers/chargebackers.
Bitcoin is a peer-to-peer system that uses a public ledger called a "blockchain" in order to record all transactions, which are conducted by solving different puzzle-like "blocks".
In the blockchain there are addresses, each one has a corresponding private key which is used to access an address in order to send funds. All addresses can be publicly accessed to view balances and transactions. Thus, all on-blockchain activity is kept on record.
Most users do not maintain a raw unencrypted copy of the private keys to their addresses. Instead we use something called WALLETS, which you use a normal password to access and which contains all the addresses and private keys you have generated, so that you can easily send funds that you have with a normal password. Wallets can either be OFFLINE (stored only on your computer) or can be stored with a THIRD PARTY online service.
The peer to peer nature means that there is no central regulatory authority of bitcoin, so there is no way to recover lost private keys that aren't backed up anywhere, and there's a controlled mechanism... a defined algorithm for how bitcoins are created and introduced (through mining).
Getting Started
Because of how intimidating the technical details of BTC can be, it's best to start with a user-friendly hotwallet (an online service that lets you simply use your email and a normal password to access your different bitcoin addresses). Two popular ones are blockchain.info and coinbase these are Western-based services that are highly respected. Using these types of services allows you to be certain that you won't lose your money just because you have lost your private key to an address you made, because you sign up with your email address and password and they will be able to send you your password if you lose it...so as long as your email is safe, your bitcoin are safe in the online wallet. This will increase your insecurity as well though because youre trusting your private keys with an online provider, but for just getting started you should just ease into it, make a wallet, and try transferring coins around, creating new addresses, etc.
When you create an account at a bitcoin wallet service you will have one address, and it can be helpful to generate QR codes to easily send money physically since the address is a long series of characters. See picture here .
Once you have this address, you're immediately ready to receive bitcoins! Just give someone this series of characters or the QR code corresponding to it to somebody and the can send you bitcoins!
And once you have a positive balance, you can also send bitcoins. Doing so is as easy as just logging into your wallet and entering somebody else's BTC address.
Now, in order to use Bitcoin you need to...acquire Bitcoins! Aside from selling things to get Bitcoin, this can be done using different sources of funds to buy them, here are some suggestions and options:
  1. Credit card -- Circle and TruCoinoffers to US and some non-US based consumers the opportunity to buy bitcoin using credit card. In general though, due to VISA/Mastercard monopoly allowing chargebacks, this is not a common or recommended way to acquire bitcoins.
  2. Paypal Localbitcoins offers to everyone worldwide the opportunity to buy bitcoin using paypal. Read their FAQ about how the escrow system operates. Similar to (1), there's still a chargeback issue that makes this method less than optimal, but you can acquire them this way.
  3. Bank transfer this is probably the easiest, most common, most drama-free way to do it. Sign up with one of the exchanges (BTC-E, Bitstamp, Coinbase, etc.) and deposit money with them by sending a bank transfer. Most developed country banks will have an easy secure online form to initiate wire transfers using the SWIFT payment network. Once the transfer clears (a day or two?), you will be able to buy and sell bitcoin instantly with the exchange, because they will credit your account and store the dollars/euros/whatever for you...and this will come in handy when addressing certain downsides of bitcoin...
Downsides of Bitcoin
Immediately we should get out of the way the well-known issues with BTC:
  1. Volatility of value. Bitcoin's value in dollar, euro, etc. is highly susceptible to violent fluctuations. This can be problematic for merchants who have to pay bills and taxes in fiat currency. SOLUTION: But luckily it's not an issue because you can make an account at BTC-E, Coinbase or Bitstamp or other well-known exchanges which allow you to sell bitcoins into Dollar or Euro IMMEDIATELY. Thus, if you sell CSGO items for Bitcoin you can sell the Bitcoin instantly into Euro, Dollar deposits on exchange sites, where they will be stored in stable government fiat. So basically you will only be holding any bitcoins you get for minutes or even seconds, because as soon as the transfer lands you can sell it safely into cash stored at exchange. This removes all uncertainty from receiving bitcoins for csgo items being sold...for individuals who do not wish to store any bitcoins and be exposed to the price fluctuation risk.
  2. Double Spending/Transaction Confirmation Wait Time. See this quick guide When making a Bitcoin transaction from one address to another, the transaction will appear INSTANTLY in the destination address as "pending". ALL BITCOIN TRANSACTIONS SHOULD BE DONE WITH THE BASIC MINING FEE (0.0001 btc...a miniscule amount that most wallets will cover themselves) which will guarantee confirmation of the pending transaction within minutes. Technically this means Bitcoin transactions are not "fee-free" if you want to get a confirmation of a transaction within minutes, but in practice it is in fact fee because Coinbase and Blockchain for example cover this fee, which is $0.03 at current market prices. After 10 minutes on average, the transaction will receive 1 Confirmation, and the risk of someone doublespending becomes exponentially lower. After 3 confirmations it is technically "fully final". UNCONFIRMED TRANSACTIONS WHICH ARE SIMPLY "PENDING" SHOULD NOT BE CONSIDERED FINAL! SOLUTION: Wait 10 minutes or so for confirmations of the transaction after you initiate the payment (if you have included this mining fee which like I said most wallets already cover), or do an "offblockchain" transaction which confirms instantly on a site like Coinbase. It is generally considered safe to send sold items after 1 Confirmation, because the amount of technical knowledge and the necessity of a rogue mining unit it takes to double-spend an address' balance is so high that the buyer will not be able to exploit it anyway. This is more of a THEORETICAL concern than a major practical concern. I have sold many items for bitcoin and I always just wait for the 1st confirmation which is sufficient. There are no known cases of someone who has double-spent a balance with 1 Confirmation when paying the mining fee.
  3. No regulation, no accountability. You can either see this as an issue or a benefit. Bitcoin is a tool that can be utilized for good or for bad. That being said, you can lose lots of money by misplacing or losing a private key to an address you have or getting hacked. While this is mitigated by using online wallets that will store the private keys to your addresses and allow you to recover them by using your email, that increases the insecurity of your funds, because sometimes wallets and exchanges get hacked. Thus, in the end, you are the one who is fully personally responsible for your funds. No banksters, no government cronies to back you. SOLUTION: Get comfortable with bitcoin and be smart about diversifying to different addresses and being secure with how you store your keys.
Conclusion
Bitcoin is an excellent tool and the only true solution for sellers to COMPLETELY ELIMINATE ANY chargeback risk when selling items for real money. For buyers it offers the opportunity to use a peer to peer system that avoids banks and government intervention to purchase digital goods. Like with any real money transactions, for full security you need a middleman to serve as escrow to verify that items do not get sent until the payment arrives.
Resources
[1] Coindesk has good information, such as a list of trusted Exchanges that they compile their Bitcoin Price Index for. Visit them here: http://www.coindesk.com/price/bitcoin-price-index/
[2] LocalBitcoins is a great place to acquire or sell bitcoins using an escrow system. You can even buy using paypal here. Visit them here: http://www.localbitcoins.com
[3] BitcoinTalk is a forum with lots of people answering common questions, visit them here: http://www.bitcointalk.org
[4] Coinbase is a good place to buy and sell bitcoins. http://www.coinbase.com
[5] For traders, Bitfinex is a great source, go here : http://www.bitfinex.com
[6] And finally, OKCoin is a growing place to trade coins, http://www.okcoin.com
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Thinking about new BIP - Segregate Everything

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Bitcoin transactions are classified as unconfirmed if they have not been received a confirmation on the blockchain within 24 hours of the transaction taking place. All the transactions are confirmed by miners who do the “work” and three separate confirmations are needed for a transaction to be considered fully confirmed. Last updated on December 8th, 2017 at 01:19 pm If youre reading this post I assume that like many others, you sent a bitcoin transaction and was kind of confused as to why its still listed as unconfirmed or pending after a few hours or so. I mean Bitcoin transactions are supposed to be instant right? In this post I wa The most popular and trusted block explorer and crypto transaction search engine. An unconfirmed bitcoin transaction occurs when a given transaction fails to receive a confirmation on the blockchain within 24 hours. All bitcoin transactions must be confirmed by miners. They need a minimum of three confirmations to be considered fully confirmed. There are two main reasons your bitcoin transaction may end up remaining unconfirmed. How to cancel an unconfirmed Bitcoin transaction. When sending Bitcoin, it can be easy to make a small mistake causing you to want to cancel your Bitcoin transaction.Oftentimes, funds can become stuck if the miner fee you enter isn’t high enough for any miner to confirm your transaction.

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Bitcoin Unconfirmed Transaction hack Script NO VERIFICATION (Earn Bitcoins) bitcoin hack

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