Burstcoin: Difference between revisions

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===Mining (proof-of-capacity)===
 
===Mining (proof-of-capacity)===
The mining process is based on a proof-of-capacity (PoC) algorithm, described in a [[whitepaper]] written by Stefan Dziembowski, Sebastian Faust, Vladimir Kolmogorov and Krzysztof Pietrzak.<ref>{{cite web |url=https://eprint.iacr.org/2013/796.pdf |title=Proofs of Space |date=2013 |format=PDF |access-date=2 September 2016}}</ref> In order to mine Burstcoins each miner first computes a large [[data set]] which is then saved to a computer storage medium. These data sets are known as plots. For each new block in the blockchain each miner will read through a tiny [[subset]] (Approximately 0.024%) of their own saved plots and return a result as a time interval in seconds known as a deadline. The miner with the lowest deadline wins the block and is then rewarded with the transaction fees and the decreasing block reward of Burstcoins.
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In order to mine Burstcoins each miner first computes a large [[data set]] which is then saved to a computer storage medium. These data sets are known as plots. For each new block in the blockchain each miner will read through a tiny [[subset]] (Approximately 0.024%) of their own saved plots and return a result as a time interval in seconds known as a deadline. The miner with the lowest deadline wins the block and is then rewarded with the transaction fees and the decreasing block reward of Burstcoins.
   
 
The computational resources for mining are limited to the time it takes the miner to find their lowest deadline, once their deadline has been submitted no other [[computational resources]] are needed until the next block making Burstcoin highly energy efficient.<ref>{{cite web |url=http://us.newsbtc.com/burstcoin-celebrates-birthday-with-release-of-new-energy-efficient-hdd-mining-wallet/ |title=BURSTCOIN Celebrates Birthday With Release Of New Energy Efficient HDD Mining Wallet |date=11 August 2015 |website=newsbtc.com |access-date=13 November 2016 }}</ref> The total size of a miners plots is comparable to the mining speed used by other cryptocurrencies. The hardware entry point for Burstcoin mining is minimal as it can currently be mined on an Android device.<ref>{{cite web |url=https://forums.burst-team.us/topic/2560/android-2-0-is-live |title=Forum announcement thread |date=20 November 2016 |website=forums.burst-team.us |publisher=IceBurst |access-date=20 November 2016 }}</ref><ref>{{cite web |url=https://play.google.com/store/apps/details?id=burstcoin.com.burst |title=Android application on Google play |website=play.google.com |publisher=BurstDevTeam |access-date=26 December 2016 }}</ref>
 
The computational resources for mining are limited to the time it takes the miner to find their lowest deadline, once their deadline has been submitted no other [[computational resources]] are needed until the next block making Burstcoin highly energy efficient.<ref>{{cite web |url=http://us.newsbtc.com/burstcoin-celebrates-birthday-with-release-of-new-energy-efficient-hdd-mining-wallet/ |title=BURSTCOIN Celebrates Birthday With Release Of New Energy Efficient HDD Mining Wallet |date=11 August 2015 |website=newsbtc.com |access-date=13 November 2016 }}</ref> The total size of a miners plots is comparable to the mining speed used by other cryptocurrencies. The hardware entry point for Burstcoin mining is minimal as it can currently be mined on an Android device.<ref>{{cite web |url=https://forums.burst-team.us/topic/2560/android-2-0-is-live |title=Forum announcement thread |date=20 November 2016 |website=forums.burst-team.us |publisher=IceBurst |access-date=20 November 2016 }}</ref><ref>{{cite web |url=https://play.google.com/store/apps/details?id=burstcoin.com.burst |title=Android application on Google play |website=play.google.com |publisher=BurstDevTeam |access-date=26 December 2016 }}</ref>

Revision as of 05:06, 7 May 2017

Burstcoin
Burstcoin Logo in a blue circle.png
Burstcoin Logo
Denominations
Symbol BURST
Demographics
Date of introduction 10 August 2014; 2 years ago (2014-08-10)
User(s) Worldwide
Issuance
Administration Decentralized
Valuation
Supply growth 10,000 Burstcoins per block (approximately every four minutes) each month the reward is reduced by 5% until 2,158,812,800 Burstcoins will have been issued.

Burstcoin is a digital cryptographic currency and payment system based on the blockchain technology. Burstcoin was introduced on the bitcointalk.org forum on 10 August 2014 as an Nxt-based currency. Burstcoins are mined using an algorithm called proof-of-capacity (PoC)[note 1] in which miners use computer storage instead of the more common energy-expensive method of permanent complex computational calculations.

The energy requirements for Burstcoin mining is minimal compared to most other cryptocurrencies making Burstcoin one of the most energy efficient within the field of proof based cryptocurrencies.[1] The Nxt blockchain platform allows for development flexibility, ensuring developers freedom to create their own applications. In this sense, Burstcoin can be considered as a next-generation cryptographic application project (often called 'cryptocurrency 2.0') in contrast to the first generation cryptocurrencies like bitcoin.[2]

History

Origin to community takeover

Burstcoin was released to the public on 10 August 2014 on bitcointalk.org by the original developer who is known under the alias "Burstcoin". Their real identity is still unknown today. The coin was launched without an initial public offering (IPO) or Premine.[note 2] The genesis block was published on 11 August 2014.[3] Approximately one year later, the main developer "Burstcoin" disappeared without any explanation.

Being an open source project, other members of community then took over the development of Burstcoin. On 11 January 2016, a new forum thread was created on Bitcointalk.org by a senior community member. The core code is still being actively developed by a wide range of contributors from all over the globe.[4]

Innovations

Burstcoin is the first cryptocurrency using the proof-of-capacity algorithm. Proof-of-capacity was successfully implemented by the original developer, going by the name "Burstcoin" on bitcointalk forums.

Burstcoin was the first cryptocurrency to implement working, "turing complete" smart contracts[note 3] in a live environment in the form of Automated Transactions (AT), this occurred before both Ethereum and Counterparty.[5][6][7] An application of these smart contracts was shown in the form of the world's first decentralized lottery.[8][9][note 4] It became the first ever program to run on top of a blockchain in a trustless decentralized manner. Other use cases of the Automated Transactions include decentralized crowdfunding.[10]

A more recent innovation by Burstcoin and Qora is the Atomic cross-chain transactions (ACCT),[11] this allows for full decentralized trading between two cryptocurrencies without the need for any third-party, namely an online exchange. Cross-chain transactions have been successfully made between the blockchain of Burstcoin and Qora.[12][13]

Design

Blockchain

The Burstcoin blockchain is a public ledger that records every transaction. It is fully distributed and works without a central trusted authority: the blockchain is maintained by a network of computers known as nodes running the Burstcoin software.

Ownership

Ownership of Burstcoins implies that a user can spend Burstcoins linked with a specific address. For this to occur, a payer must digitally sign the transaction using the associated private key. Without knowledge of the private key, the transaction cannot be signed and Burstcoins cannot be spent. The network verifies the signature using the public key. If the private key is lost, the Burstcoin network will not recognize any other evidence of ownership; the coins are then unusable and are effectively lost.

Transactions

A summary of a Burstcoin transaction is as follows : The sender details the parameters for the required transaction type (sending money, creating an alias, transmitting a message, issuing an asset or an order for an asset). All values for the transaction inputs are bounds checked for validity. If the transaction is found to be valid then the public key for the generating account is computed using the supplied secret passphrase. A new transaction is created, with a type and sub-type value set to match the type of transaction being created. All specified parameters are included in the Transaction object. A unique transaction ID is generated with the creation of the object. The transaction is digitally signed using the sending account's private key. The encrypted transaction data is placed within a message instructing network peers to process the transaction. The transaction is then broadcast to all peers on the network. Burstcoin transactions are based on the Nxt code base. A detailed explanation of the transaction process can be found on its wiki page.

Mining (proof-of-capacity)

In order to mine Burstcoins each miner first computes a large data set which is then saved to a computer storage medium. These data sets are known as plots. For each new block in the blockchain each miner will read through a tiny subset (Approximately 0.024%) of their own saved plots and return a result as a time interval in seconds known as a deadline. The miner with the lowest deadline wins the block and is then rewarded with the transaction fees and the decreasing block reward of Burstcoins.

The computational resources for mining are limited to the time it takes the miner to find their lowest deadline, once their deadline has been submitted no other computational resources are needed until the next block making Burstcoin highly energy efficient.[14] The total size of a miners plots is comparable to the mining speed used by other cryptocurrencies. The hardware entry point for Burstcoin mining is minimal as it can currently be mined on an Android device.[15][16]

Proof-of-capacity is also claimed to be ASIC Proof. Burstcoin's proof-of-capacity algorithm is based on proof-of-work, so theoretically one could compute the Proofs in real time. However, it is not currently possible to complete enough work to be done during a 4-minute time interval that even the most cost efficient ASIC could not mine efficiently enough to make it cheaper to use than a hard drive.

Mining pools

Given that it can take a long time to find the smallest deadline, some miners collectively mine in what is known as a mining pool.[17] Mining pools allow miners to have a more evenly distributed Burstcoin income: the reward for each block won by the pool is distributed between the miners of that pool. By use of mining pools smaller miners can collectively compete with the larger solo miners. When a block is won the pool miner who finds the lowest deadline receives typically between 50% and 60% of the block reward. Alternatively a solo miner wins 100% of the block reward.

Features

The core feature set of Burst is based on the Nxt platform which allows the adding of external services to be built on top of the blockchain. The Burstcoin Wallet comes in two versions: The web based wallet (online wallet) and a Windows desktop version (Windows Client) which is essentially a wrapper for the web wallet and a local instance with some added functionalities. Users can access their account from anywhere in the world with internet access and a web browser. The features of the Burst Wallet include (but are not limited to) the following:

Android version

An Android version of the Burst Wallet was released in 2016.[18][19] Although it currently only has a subset of the features of the PC version it allows users to plot the storage capacity of the device, to mine coins with it and to send and receive Burstcoins on any Android capable device.

Asset Exchange

Screenshot of the Burstcoin Asset Exchange window

The Burst Asset Exchange is a peer-to-peer exchange platform integrated into the Burst Wallet. It functions primarily as a secure decentralized trading platform for Burst Assets. The popularity of the asset exchange is based upon the absence of any third party, allowing improved efficiency and reduced costs. A burst asset is basically a token to represent anything the asset issuer deems to be of value so that it can be traded, common examples of such assets include shares in the following: mining pools, retirement funds, crypto mining rigs, crypto gambling sites and silver investments.

Automated transactions (Smart Contracts)

Screenshot of First Smart Contract using Burstcoin

Smart Contracts are self-executing contractual states, stored on the blockchain.[note 5] In brief an Automated Transaction is a "Turing complete" set of byte code instructions which will be executed by a byte code interpreter built into its host. An AT supporting host platform automatically supports various applications ranging from games of chance to automated crowdfunding and ensuring that "long term savings" are not lost forever.[20]

Crowdfunding

The crowdfunding feature allows users within the Burst community to raise funds in Burst for project creators in a decentralized way.

Escrow service

The Burstcoin Wallet has an inbuilt escrow service, it allows a quantity of Burstcoins to be held by a third-party on behalf of transacting parties.

Marketplace

The Burstcoin Wallet includes a completely decentralized marketplace where Burstcoin users can view other users items for sale by referencing their account id. It will display all items for sale for the designated account holder.[21]

Monetary aspects

Units

One unit of Burstcoin is known as a Burst. The symbol for Burstcoin is BURST.[citation needed]

Buying and selling

Burstcoins can be bought and sold in online exchanges against Bitcoin. Burstcoin is actively being traded on the following exchanges.

Notes

  1. ^ "Proof of Capacity". cryptojunction.com. Retrieved 27 November 2016. 
  2. ^ "What is a premine". cryptocompare.com. 18 November 2016. Retrieved 18 December 2016. 
  3. ^ "Burstcoin Smart Contract Press Release" (PDF). Jason Crowe. 22 January 2015. Retrieved 9 October 2016. 
  4. ^ "Burstcoin press release : the lottery case)" (PDF). Jason Crowe. 25 January 2015. Retrieved 9 October 2016. 
  5. ^ Cassano, Jay (17 September 2014). "What Are Smart Contracts? Cryptocurrency's Killer App". fastcompany.com. Retrieved 16 November 2016. 

References

  1. ^ "Can Cryptocoins Be Environmentally Friendly?". cryptocoinsnews.com. 2 January 2017. Retrieved 20 January 2017. 
  2. ^ Brokaw, Alex (23 August 2014). "Crypto 2.0 Roundup: Bitcoin's Revolution Moves Beyond Currency". coindesk.com. Retrieved 17 November 2016. 
  3. ^ "Exploration of the Genesis Block". burstcoin.biz. 11 August 2014. Retrieved 17 November 2016. 
  4. ^ "Github project contributors". github.com. Retrieved 17 November 2016. 
  5. ^ Lombardo, Hans (12 February 2015). "Burstcoin Claims Already Offering Smart Contract Applications". allcoinsnews.com. Retrieved 8 October 2016. 
  6. ^ Gillespie, Clay Michael (23 January 2015). "Alternative Cryptocurrency Claims to Have Won the Race to Smart Contracts". insidebitcoins.com. Retrieved 8 October 2016. 
  7. ^ Maina, John Weru (27 January 2015). "Cryptocurrency BURST Makes Smart Contracts a Reality, What Happened to Ethereum?". cryptocoinsnews.com. Retrieved 8 October 2016. 
  8. ^ Lombardo, Hans (26 January 2015). "BurstCoin Launches Lottery As Smart Contracts Use Case". allcoinsnews.com. Retrieved 8 October 2016. 
  9. ^ "Smart Contract Use Case : The Lottery code". ciyam.org. CIYAM Developers. Retrieved 9 October 2016. 
  10. ^ "Automated Transactions Documentation index". ciyam.org. CIYAM Developers. Retrieved 9 October 2016. 
  11. ^ "Use Case: Atomic Cross-Chain Transfer code". ciyam.org. CIYAM Developers. Retrieved 9 October 2016. 
  12. ^ P.H., Madore (22 May 2016). "Qora and Burst Now Able to Make Cross-Chain Transactions". cryptocoinsnews.com. Retrieved 14 October 2016. 
  13. ^ "World's First "Atomic Cross-chain Transfer" Completed Between Burst & Qora Blockchains". cryptonewsday.com. 18 May 2015. Retrieved 14 October 2016. 
  14. ^ "BURSTCOIN Celebrates Birthday With Release Of New Energy Efficient HDD Mining Wallet". newsbtc.com. 11 August 2015. Retrieved 13 November 2016. 
  15. ^ "Forum announcement thread". forums.burst-team.us. IceBurst. 20 November 2016. Retrieved 20 November 2016. 
  16. ^ "Android application on Google play". play.google.com. BurstDevTeam. Retrieved 26 December 2016. 
  17. ^ "Pool Overview". docs.google.com. 30 June 2016. Retrieved 25 January 2017. 
  18. ^ "Burstcoin Android wallet release". forums.burst-team.us. daWallet. 18 April 2016. Retrieved 27 August 2016. 
  19. ^ "Android application on Google play". play.google.com. BurstDevTeam. Retrieved 26 December 2016. 
  20. ^ "Automated Transactions Documentation index". ciyam.org. CIYAM Developers. Retrieved 9 October 2016. 
  21. ^ Boluna, Xavi (15 April 2015). "BURST Opens Market Supported by Smart Contracts". coinbuzz.com. Retrieved 11 November 2016. 
  22. ^ "Poloniex Exchange BTC/BURST". poloniex.com. Retrieved 28 January 2017. 
  23. ^ "C-CEX Exchange BTC/BURST". c-cex.com. Retrieved 28 January 2017. 
  24. ^ "Bittrex Exchange BTC/BURST". bittrex.com. Retrieved 28 January 2017. 
  25. ^ "Livecoin Exchange Orderbook". livecoin.net. Retrieved 28 January 2017. 
  26. ^ "Github for the Bitsquare update when Burstcoin was added". github.com. ManFredKarrer. 20 October 2016. Retrieved 28 January 2017.