Coinspiracy: Altcoin

Thursday 18 August 2011

Altcoin

Altcoin-the alternative cryptocurrency?

- The currently will have constant inflation: there is no total limit for the maximum coins existing, rather, they're generated as long as there are people mining
-> this will encourage people to spend their coins rather than holding them back
-> there will be no significant advantages for early-adopters (although it will still be easier to mine coins in the beginning, due to lower difficulty)
-> the problem "do people still mine after they don't get any block rewards, but rather only tx fees" doesn't exist
-> the inflation rate will slowly decrease, as the proportion of the coins generated will become smaller and smaller compared to existing coins: as bitcoins will have more and more deflation on the time axis, altcoins will have less and less inflation...
-> I personally think that inflation > deflation.
-> coins lost (there will be lots of as the time goes by) will not be that significant problem as there is a constant supply of new ones

- Six AltCoins will be generated every six minutes, that is 60 Altcoins per hour or 1 440 per day or 43 200 per month or 518 400 each year.
-> block generation is faster than on Bitcoin, transactions will be processed faster

- Launch date will be set far in advance
-> 11.11.2011 or 11/11/11, pick your poison!
-> This will give enough time for advertising this fork, which makes more widespread adoption much more likely, than if it started as an inside-thingy with handful of people mining majority of the coins themselves

- Absolutely no coins will be mined before the official launch
-> Bounties will be paid via bitcoins / namecoins / altcoins / USD / euros donated to the project

This one even has a pretty chart...

Bitcoiners reaction

As there will be no early adopters, so there will be no adopters.

How do you think Satoshi would feel to know your were forking his blockchain behind his back?

QUITE FORKING WITH THE BLOCKCHAIN!!!

Leave the forking blockchain alone already!!!

You know you've done something right when people start copying your work.

I'm not sure about this inflation thing.

The government will love it. OP is probably a shill. Selling inflation. Socialist.

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What is a blockchain?

A block chain is a transaction database shared by all nodes participating in a crypto-currency such as Bitcoin. A full copy of a currency's block chain contains every transaction ever executed in the currency. With this information, one can find out how much value belonged to each address at any point in history. Every block contains a hash of the previous block. This has the effect of creating a chain of blocks from the genesis block to the current block. Each block is guaranteed to come after the previous block chronologically because the previous block's hash would otherwise not be known. Each block is also nearly impossible to modify once it has been in the chain for a while because every block after it would also have to be regenerated. These properties are what make double-spending of bitcoins very difficult. The block chain is the main innovation of Bitcoin. Honest generators only build onto a block (by referencing it in blocks they create) if it is the latest block in the longest valid chain. "Length" is calculated as total combined difficulty of that chain, not number of blocks, though this distinction is only important in the context of a few potential attacks. A chain is valid if all of the blocks and transactions within it are valid, and only if it starts with the genesis block. For any block on the chain, there is only one path to the genesis block. Coming from the genesis block, however, there can be forks. One-block forks are created from time to time when two blocks are created just a few seconds apart. When that happens, generating nodes build onto whichever one of the blocks they received first. Whichever block ends up being included in the next block becomes part of the main chain because that chain is longer. More serious forks have occurred after fixing bugs that required backward-incompatible changes. Blocks in shorter chains (or invalid chains) are called "orphan blocks", and while they are stored, they are not used for anything. When a block becomes an orphan block, all of its valid transactions are re-added to the pool of queued transactions and will be included in another block. The 50 BTC reward for the orphan block will be lost, which is why a network-enforced 100-block maturation time for generations exists. Because a block can only reference one previous block, it is impossible for two forked chains to merge. It's possible to use the block chain algorithm for non-financial purposes, learn more about Alternative Chains.