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Bitcoin Cash Sees Mining Pool Shift and Hashrate Surpass 4 Exahash

22/01/2020 by Idelto Editor

Bitcoin Cash Mining Sees Pools Shift While Hashrate Surpasses 4 Exahash

While people have watched the BTC network surpass 100 exahash per second (EH/s), Bitcoin Cash (BCH) has been steadily gathering hashrate as well. Since the November 15, 2018 blockchain split, which produced the Bitcoin SV (BSV) chain, BCH hashrate has jumped by more than 3x. Bitcoin cash is often more profitable to mine than BTC and during the last seven days, the BCH hashrate has averaged around 4EH/s.

Also Read: Debate Ensues After 68% of BCH Hashrate Mined by Stealth Miners

Bitcoin Cash Hashrate Climbs Over 4 Exahash per Second

It’s been well over a year since BSV split off from the BCH network during the mid-November 2018 hash war. After a week or so, both chains saw hashrates drop below 1EH/s and there was a period of significant profitability changes between BTC and BCH miners. Since then, BCH miners have picked up the pace and are hashing far more than they did following the hash war aftermath.

Bitcoin Cash Sees Mining Pool Shift and Hashrate Surpass 4 Exahash — BCH hashrate on January 21, 2020. — Did you know you can earn BTC and BCH through Bitcoin Mining? If you already own hardware, connect it to our powerful Bitcoin mining pool. If not, you can easily get started through one of our flexible Bitcoin cloud mining contracts.

On November 15, just before the split, there was more than 5EH/s hashing away at the BCH chain, but that plummeted to its lowest point on December 17, 2018. Today, according to multiple hashrate recording websites, the BCH hashrate spiked over 8EH/s three hours ago, as recorded by fork.lol. The Bitcoin Cash network’s average during the last week has been around 4EH/s. This means that from mid-December until now, BCH has seen a hashrate increase of more than three times the daily average.

In fact, all three SHA256 networks have seen a hashrate rise since mid-December 2018. The BTC hashrate expanded from 32EH/s to this week’s 110EH/s average. Bitcoin SV (BSV) has also seen its network hashrate swell, as it jumped from 1EH/s to 3.3EH/s on January 21, 2020. Coin Dance also shows that BCH has been more profitable to mine in contrast to BTC for more than half of 2019.

For instance, at 12:15 p.m. EST on Tuesday afternoon, “it is currently 3.50% more profitable to mine on the Bitcoin Cash blockchain,” Coin Dance data informs visitors. Since the recent price spike, BSV has been more profitable to mine against BTC. At the time of writing, “it is currently 11.80% more profitable to mine on the Bitcoin SV blockchain,” says the Coin Dance SV website.

Satoshi Probably Didn’t Envision Three Competing SHA256 Networks

As the BCH network has seen a significant increase in hashrate, a large number of stealth miners have been hashing away at the network. News.Bitcoin.com reported on the topic in December 2019 and the trend has remained consistent. During the last week, BCH has had 49% of the network being hashed by unknown mining entities. In the last 24 hours, unknown miners captured roughly 57% of the network hashrate.

Since we published that mining report, a mining operation called Taal has appeared on the Bitcoin Cash network. On January 10, a stealth miner who at one time signed BCH block coinbases as “fezi3*,” changed the block signature to “taal.com/fezi3*.” Taal is associated with Calvin Ayre’s Squire Mining Inc. rebrand and BSV backers Craig Wright and Jimmy Nguyen are advisors for Taal. The name Taal is also the name of a volcano that just erupted near one of Ayre’s island villas. Just prior to advertising onchain that it was mining BCH, Taal implemented a concept called Miner ID.

All Three Networks Will See a Reward Halving This Spring

Alongside Taal, which captures 2% of BCH blocks today, there are nine other identified BCH pools mining the network. This includes Bitcoin.com, Prohashing, Okex, Huobi, Btc.com, Viabtc, Poolin, Antpool, and Btc.top. Seven of the known BCH mining pools today also mine the BTC chain. There are four BCH miners that mine the BSV chain and two of them mine on the BTC network. No one knows exactly why there’s a lot of stealth miners mining the BCH chain or why there’s been such a shift in mining pools. It’s anyone’s guess as to why BSV miners are mining the BCH chain as well and only the pool operators themselves know the moves they are making.

In the last three days, unknown miners from BTC have dipped to around 3% of the network, but a few weeks prior, BTC had more than 20%. BSV’s hashrate also has a high concentration of stealth miners hashing away at the chain. At press time there’s around 55% of unknown hash processing the BSV chain during the last 24 hours. Despite the uncertainty of why pool operators are stealth mining and the shift in hashrate on all three networks, a number of speculators believe the changes are due to the upcoming halvings. All three SHA256 networks will see a block subsidy reward halving in the spring of 2020 and miners may be steadily preparing for this event.

What do you think about the BCH network hashrate climbing more than 3x the number it held in mid-December 2018? What do you think about the changes and shifts between all three SHA256 networks with BTC and BSV included? Do you think these shifts have anything to do with the upcoming halvings? Let us know what you think about this subject in the comments section below.

Image credits: Shutterstock, Coin Dance, Charts.Bitcoin.com, Fork.lol, Wiki Commons, Fair Use, and Pixabay.

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UK Tax Agency to Pay $100K for Blockchain Surveillance Software

21/01/2020 by Idelto Editor

On January 17, the UK tax agency Her Majesty’s Revenue and Customs (HMRC) published a job opportunity for a private contractor to design a cryptocurrency blockchain analysis tool. According to the listing, the contract is for one year and HMRC will pay the contractor $100,000 for software that can “identify and cluster crypto asset transactions.”

Also read: Britain’s Tax Authority Updates Crypto Guidelines

HMRC Wants a Blockchain Analysis Tool and Is Willing to Pay $100,000

Governments worldwide have been cracking down on cryptocurrency holders in order to make sure they are paying taxes. In the U.S., the country’s tax agency the IRS has initiated a broad stroke of tax enforcement against people who may own or at one time possessed cryptos. In the United Kingdom, HMRC has been following a similar path as the tax entity issued guidance for individual cryptocurrency holders in 2018 and then published more guidelines for businesses on November 1, 2019. HMRC’s updated crypto rules highlight the fact that they believe “individuals residing in the UK should file their tax obligations.” Despite the new guidelines toward cryptocurrency use, the tax authority’s rules are still not clearly defined and people still don’t understand their tax obligations. Nevertheless, just like the IRS and its confusing guidelines, HMRC plans to crackdown on tax evaders anyway.

On Friday, a representative from England published an advertisement for HMRC looking for a software engineer to build a blockchain surveillance tool. According to the employment listing, the contractor can work from “any region” remotely. The contract runs from January 2020 to February 2021 and the value of the contract is $100,000. However, a group of voluntary, community and social enterprise (VCSE) contractors cannot apply. Small to medium enterprises (SME) are allowed to apply for the position to build the official HMRC blockchain analysis tool. HMRC’s description states:

Provision of a tool that will support intelligence-gathering methods to identify and cluster Crypto asset transactions into linked transactions and identify those linked to Crypto asset service providers.

Governments Worldwide Aim to Combat Crypto Tax Evasion and Money Laundering

The tool must also de-anonymize blockchain activities by cluster analysis and identify confidence ratings in clusters. The tool needs to provide an “attribution of a cluster/address to a known commercial entity (exchange) or a known service provider (mixing service, gambling service, dark market, etc).” The platform must be web-based and offer a visualization of blockchain analytics in order to identify crypto-using suspects and build intelligence. At minimum, the tool needs to support blockchains such as BTC, BCH, ETH, ETC, XRP, USDT, and LTC. HMRC’s job application emphasizes that the tax agency would love for the tool to analyze monero, dash, and zcash as well. The contractor must also provide secondary training so other government employees can learn how to utilize the blockchain analysis tool. The crypto contractor will be paid via HMRC’s dedicated payment portal Ariba.

Additionally, the contractor applying for HMRC’s job has to fill out a lengthy security questionnaire as part of the blockchain tool proposal response. HMRC’s job application proposal cites that crypto assets are being used for “tax evasion and money laundering.” U.S. regulators, specifically Homeland Security Investigations (HSI), have been working with the IRS to tackle money laundering and tax evaders as well. In 2016, an affadavit revealed that HSI created a special task force to identify unlicensed bitcoin exchangers. Two years later, HSI published its 2019 fiscal year pre-solicitation documents which show the agency asked for money for blockchain analysis tools.

“This proposal seeks applications of blockchain forensic analytics for newer cryptocurrencies, such as zcash and monero,” the solicitation letter explains. “Blockchain forensic analytics for the homeland security enterprise can help the DHS law enforcement and security operations across components as well as state and local law enforcement operations,” states page 21 of the DHS solicitation letter. “Private financial institutions can likewise benefit from such capabilities in enforcing “know your customer” and anti-money laundering compliance.”

HMRC’s newly updated tax guidelines toward crypto-related activities note that most crypto asset operations are “taxable economic activity.” This includes cryptocurrency mining as well as buying, selling, and exchanging a digital asset for another type. Individuals and SMEs interested in HMRC’s blockchain analysis tool contract have until January 27 to submit a proposal alongside the security questionnaire. The UK tax agency’s employment listing shows that governments are actively searching for ways to de-anonymize crypto transactions. HMRC’s crypto analysis tool application underscores that the tax agency is there to make sure the collection of money pays for the UK’s public services. The contract proposal notes that the agency wants to “make it hard for the dishonest minority to cheat the system.”

What do you think about Her Majesty’s Revenue and Customs job listing looking for a contractor to build a blockchain surveillance tool? Let us know what you think about this topic in the comments section below.

Image credits: Shutterstock, HMRC application, Fair Use, Wiki Commons, and Pixabay.

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Bitcoin Cash Gets Significant Privacy Boost With Cashfusion Alpha Launch

21/01/2020 by Idelto Editor

Bitcoin Cash Gets a Significant Privacy Boost With Cashfusion Alpha Launch

On January 17, the BCH developer known as Acidsploit announced the launch of the highly anticipated Cashfusion alpha. Interested parties can reach out to the Cashfusion developers via the team’s Telegram group to become an alpha tester. The news of the launch excited the BCH community a great deal, as it means a significant privacy tool is coming to the Bitcoin Cash environment.

Also read: How to Create Custom SLP Tokens With the Bitcoin.com Mint

Bitcoin Cash Is Becoming More Fungible

During the last few months, there’s been a lot of chatter about the Cashshuffle protocol and the newest privacy-preserving concept Cashfusion. Since the inception of the original Cashshuffle project which launched on March 27, 2019, there’s been over 200,000 BCH shuffled. According to @Acidsploit’s data, that’s a total of 42,446 shuffles to date and daily recorded volumes show shuffling really picks up on the weekends. The developer’s Cashshuffle site also shows the number of Cashfusion transactions, and there are now 1,322 fusions at the time of publication. Cashshuffle leverages the Coinjoin concept, but there are still a few ways shufflers can leak data about their original addresses when they do things like spend change or consolidate funds.

Bitcoin Cash Gets Significant Privacy Boost With Cashfusion Alpha Launch — Acidsploit’s Bitcoin Cash Privacy Stats website notes there’s been 1,322 fusions so far and 42,446 shuffles.

Recently, former lead Bitcoin Core developer Gavin Andresen wrote about the issues with consolidating coins and spending change after using the Coinjoin-styled ethereum wallet Tornado.cash. Cashfusion, however, goes beyond the traditional Coinjoin idea because developers claim Cashfusion-based Coinjoin transactions can be done without the equal amount requirement. Electron Cash developer Jonald Fyookball published a paper about the combinatoric math in Cashfusion. A quote in Fyookball’s paper from software developer Mark Lundeberg states:

In Cashfusion, we have opted to abandon the equal-amount concept altogether. While this is at first glance no different than the old naive schemes, mathematical analysis shows it in fact becomes highly private by simply increasing the numbers of inputs and outputs. For example, with hundreds of inputs and outputs, it is not just computationally impractical to iterate through all partitions, but even with infinite computing power, one would find a large number of valid partitions.

The Bitcoin Privacy Game-Changer Cashfusion Is Here

Additionally, the privacy-centric Wasabi wallet developer recently complimented the Cashfusion project and said that if the math works it could benefit Bitcoin privacy significantly. “I am not convinced if this is true, but if it is, it’s a game-changer in Bitcoin privacy,” the Wasabi engineer tweeted. Then on January 17, after the Cashfusion developers teased the early software would be available soon, Acidsploit announced the Cashfusion alpha launch via the read.cash blog.

“The alpha version has been polished enough so that it can be used by power users to get an initial feel of the tool and to test the protocol for stability and robustness,” Acidsploit’s announcement revealed. “We are actively looking for more people to test,” he added. Interested people who want to test the early version of Cashfusion can do so by reaching out to the Cashfusion developers via the team’s Telegram chat group.

The developer also noted that the current alpha Cashfusion client leverages the following features:

Enable/Disable Cashfusion
Integrated TOR client
Monitor status
Coin target setting (number of coins, size of coins, random fraction)
Multi queueing
Self Fusion (temporary for better liquidity during testing)

The developer remarked that there are other features coming that are scheduled in the Cashfusion roadmap like the ability to track fused coins to determine the level of privacy. Two options for “smart coin choosers” are coming, such as avoiding the combination of tainted and non-tainted coins as much as possible and choosing properly fused coins when doing payments. Lastly, the engineer detailed the Cashfusion developers want to add a limiter on perpetual fusing. “When you join a Cashfusion (CF) transaction, you specify the inputs you want to join with and the outputs you expect,” the developer’s post notes. “When the transaction is built, you are asked to sign it [and] the client verifies that the CF transaction contains the inputs and outputs you specified. If that is not the case, your client will not sign the transaction and it will fail.” Acidsploit further stressed:

Cashfusion transactions are atomic, meaning when something goes wrong for a participant for whatever reason, the CF transaction will fail as a whole.

Throughout crypto forums and social media, the Cashfusion launch announcement was welcomed with open arms, as the protocol could benefit bitcoin cash fungibility a great deal. Bitcoin.com Executive Chairman Roger Ver excitedly wrote “Privacy on Bitcoin Cash” and was asked if the protocol would be implemented in a future version of the Bitcoin.com Wallet. “Absolutely,” Ver responded, while other BCH supporters discussed the importance of the alpha release. “Enhanced privacy and fungibility are the cornerstones of making BCH truly peer to peer cash, a place BTC never got to, and never will as it spirals into institutionalized custodial fed-chains,” one user wrote on Reddit. In addition to the launch announcement, Acidsploit’s read.cash post also has a step-by-step guide on how to use Cashfusion by utilizing the Electron Cash wallet.

What do you think about the Cashfusion alpha being released and added privacy coming to the Bitcoin Cash network? Let us know what you think about this topic in the comments section below.

Image credits: Shutterstock, Acidsploit, read.cash, Acidsploit’s stats pages, and

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How Is Bitcoin Cash Different From Bitcoin Core?

20/01/2020 by Idelto Editor

The crypto space can be hard to break into for those unfamiliar with the jargon, lingo, and foundational knowledge taken for granted by the already initiated. Adding to this difficulty is the fact that there are several different cryptos which bear the name “Bitcoin.” Convoluted as this all may seem, the differences are pretty easy to understand. This article seeks to explain in simple terms the difference between two of the most popular cryptocurrencies: Bitcoin Cash (BCH) and Bitcoin Core (BTC).

Also Read: An In-Depth Look at the Multi-Currency Cold Storage Card Ballet

Bitcoin’s Genesis

Just before the first version of Bitcoin launched in 2009, Satoshi Nakamoto described his creation in the Bitcoin whitepaper, or foundational document, as “A purely peer-to-peer version of electronic cash,” which “would allow online payments to be sent directly from one party to another without going through a financial institution.” The ticker symbol for this currency was eventually set as BTC.

Over the years, however, as disagreements among community members and developers about scaling grew, it became clear that differences were irreconcilable, and that a split in the bitcoin community via a fork in the protocol would occur.

The Bitcoin Cash Hard Fork

One group wished to increase the block size significantly to allow for faster processing of transactions, elimination of high transaction fees, and greater ease-of-use as cash for everyday spending and payments. The other group argued that such high fees were necessary and even desirable, and that extremely slow transaction speeds were a tradeoff for a more secure network. Arguments have been made in favor of both sides regarding the issue of security and centralization, as this Twitter thread demonstrates.

On August 1, 2017, Bitcoin Cash (BCH) split from Bitcoin Core (BTC) via a hard fork, and the former now features 32MB blocks, whereas BTC has a theoretical capacity for a max “block weight” of 4MB via a controversial solution known as Segwit. Popular bitcoin core narratives have since evolved saying BTC is like “digital gold” that should not be spent, but only held and saved. This presents a clear problem where Satoshi Nakamoto’s vision was specifically for a “purely peer-to-peer version of electronic cash.”

Onchain Scaling vs. Second Layer Solutions

Adding to the specialized language, buzzwords and other crypto terminology that inundates newcomers to the space is the idea of a second layer. This is exactly what it sounds like: a new layer on top of a blockchain where transactions and settlements can be made prior to being set in stone in the underlying chain. One such popular and developing second layer for BTC is known as the Lightning Network.

“Wait a minute,” a crypto newb might interject, “if the idea of bitcoin is to increase transparency, simplicity and trustlessness in transactions, wouldn’t a second layer only complicate things?” In this case the neophyte would be onto something. While second layer solutions such as the Lightning Network are often touted as being the answer to all of BTC’s scaling and congestion issues, as with Segwit, there are numerous criticisms and potential problems. One of which being the necessity of trusting unknown parties with the transmission of one’s funds, prior to said transaction being written into a block.

The Bitcoin Cash network does not rely on such a second layer as it has more capacity and speed for processing transactions directly onchain. Though there are critics of this approach as well, when it comes to the ability to use crypto as cash — and a readily-navigable user experience — the principle that unnecessary complications mean more potential problems comes into play, which is part of the reason BCH separated from BTC.

Trying Both Coins

The best way to understand the fundamental differences between Bitcoin Cash (BCH) and Bitcoin Core (BTC) is to dive in and try the two currencies out. By sending small amounts back and forth with a friend, across multiple wallets, or using them to pay for goods and services, one gets a feel for how they work, can compare fees and transaction times, watch market value fluctuate, and begin to understand overall security and convenience, unique features, benefits and drawbacks.

The Bitcoin.com Wallet supports both BCH and BTC, is freely downloadable, and can be loaded with free bitcoin cash from the Bitcoin Cash Faucet. BCH and BTC can also be bought with a credit card, and more privacy-minded users might utilize local.Bitcoin.com, an encrypted-chat and blind escrow trading platform that allows the purchase and sale of bitcoin cash for several payment options including cash, with no invasive KYC (know your customer) policy.

Getting a feel for permissionless money and real economic freedom without a middleman or third party is exhilarating, and speaks to the movement of money into a new era as Satoshi Nakamoto, among many others, imagined. Whatever one’s preference when it comes to crypto — whether it be one coin or many — most in the space agree the vision that “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution” is something worth fighting for.

What do you think about the differences between Bitcoin Cash and Bitcoin Core? Do you have another crypto that you like? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Image credits: Shutterstock

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Maduro Opens International Crypto Casino

20/01/2020 by Idelto Editor

Venezuela’s President Nicolas Maduro has authorized the opening of an international casino at a luxury hotel in Caracas where bets must be placed in petros, the country’s national oil-backed digital currency. Several cryptocurrencies and fiat currencies can be exchanged into petros to wager in the casino. The proceeds are expected to be used for healthcare and education.

Also read: Regulatory Roundup: EU-Wide Crypto Regulations, New Rules in Europe, US, Asia

Casino for Gambling With Petros

The president of Venezuela announced Friday that he has authorized the opening of a casino at the Humboldt Hotel in Caracas where bets must be placed in petros (PTR). The hotel, located on the peak of El Avila hill, was reopened in 2018.

“I have authorized legal bets with petros,” he reportedly said during a joint radio and television broadcast. “For example, in the Hotel Humboldt, there will be an international casino and everyone who wants to bet will bet with petros, all those resources will enter the state for health and education.” Maduro elaborated:

You can come to bet. There will be offers, special prices. You buy your petro tokens, you can buy them if you bring yuan, if you bring yen, dollars, euros or any other cryptocurrencies … buy your petros and make your licit bets allowed by the state as contemplated by national laws.

Maduro announcing the opening of a casino at the Hotel Humboldt.

Gamblers must acquire PTR to participate, Criptonoticias news outlet clarified, citing that the initiative aims to procure additional resources to boost Venezuela’s recessionary and hyperinflationary economy. While the Venezuelan president did not specify which cryptocurrencies are accepted, the government’s Petroapp allows users to buy PTR with BTC, LTC, and DASH.

Promoting Petros

The petro was officially launched in February 2018 by Maduro in an attempt to evade U.S. and European Union sanctions against some state officials and companies. However, many are calling the petro a scam and the U.S. has banned its use.

Last week, he decreed that the sale of all fuel sold by the PDVSA, Venezuela’s state-owned oil and natural gas company, for planes operating international routes be made in petros from now on, AFP reported. Some buyers of Venezuelan crude oil have reportedly halted purchases after the country started demanding payment of port fees in petros.

Furthermore, Maduro has decreed the mandatory use of the petro to pay for state document services including passports. In December, he approved bonuses in petros for state employees and pensioners. The government gave half a petro to 3.5 million public workers and 4.5 million pensioners in December to test the use of the digital currency for payments. In January, it announced that 1,233,093 people paid with petros at 7,422 stores throughout the national territory during that time period.

Maduro pushing for stores to accept petros.

Sign of Casinos Returning to Venezuela

The Venezuelan authorities have traditionally frowned upon casinos, Criptonoticias described. In 2011, Maduro’s late mentor, Hugo Chavez, ordered the closure of bingo halls and casinos in the country. Since then, they have practically been extinct and it is only possible to bet online on certain permitted platforms, the news outlet conveyed, noting that Chavez referred to casinos and bingo halls on several occasions as places of prostitution, drug sales, and illegal activities.

Following Friday’s casino announcement, the media started reporting that Venezuela may be warming up to casinos again. The Humboldt Hotel’s casino is expected to begin operations in the coming months, but Maduro did not reveal whether he plans to open more casinos. He also did not provide details about the use of petros and other cryptocurrencies, such as bitcoin, at the hotel. In addition, the publication added that the Venezuelan president did not clarify how to buy PTR at the casino, whether the Petroapp is needed, how to withdraw profits, or if there would be crypto ATMs on the premises.

In the meantime, there are many online casinos where bets can be placed in a number of cryptocurrencies. Bitcoin.com’s gaming platform, for example, is filled with a wide range of casino-style games allowing players to wager and win with BCH and BTC. No registration is required, games are provably fair, and payouts are instant.

What do you think of Maduro opening a casino for gambling with petros? Let us know in the comments section below.

Images courtesy of Shutterstock and the Venezuelan government.

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