Posted on 02/25/2014 6:34:19 AM PST by BenLurkin
Embattled bitcoin exchange Mt. Gox appeared to be undergoing more convulsions, as its website became unavailable, signaling a new stage in troubles that have dented the image of the virtual currency.
(Excerpt) Read more at stream.wsj.com ...
Mortimer Duke, Trading Places: “Turn those machines back on! Turn those machines back onnnnnnn!”
I read that in order to start using bitcoin you have to download and ‘initialize’ your setup which includes data on every transaction that ever occurrred
This is an incredibly bad software idea (and I write software for a living)
Mt. Gox has been dead for over a month now. They are only just now realizing it.
Death of Gox ping.
Thanks for your reply- I really do not understand it very well
I do think it is an odd software design that you need to store info on every transaction that ever occured (do you rally want everyone’s transactions sent all over the world?)
At this point I am wary that someone figured out how to make this into a giant scam, using software some inexperienced designer made.
Mt. Gox CEO Mark Karpeles holds up a commemorative Bitcoin medallion.
None noticed ‘cause they are all staring gleefully at the Fool’s Gold Monopoly Money they are holding.
The idea of having work nodes that have the whole blockchain is basically security.
If you are running the bitcoin software and somebody else does a transaction somewhere, part of the plan is that it uses your computer and your copy of the blockchain to verify whether the transaction is real.
Right now I am re-synching Bitcoin. I tried it the first time back last April. It took over ten days to download the initial data, and I am on DSL. As part of running bitcoin, it automatically connects you to other bitcoin nodes - I am currently connected to 8 other nodes.
Theoretically, it’s a good design and would work. But the developers need to find a way where not all nodes have all the data - it gets somehow “chunked up” and distributed.
That's where I will have to respectfully disagree with you.
It is not 'scalable'.
Imagine if everyone used bitcoin? With millions of people and billions of transactions would each person have to wait 10 days to download? probably closer to 100 days, using the existing design.
To me this is an example of someone not used to programming enterprise-scale applications.
I agree, it’s not scalable now as it grows and grows. And that’s why I think there will end up being nodes built solely for transaction verification, and that the software will end up doing random connects for data verification/retrieval.
I understand scalability. Been a mainframe systems programmer since ‘85.
Worked with some of the biggest and bluest stuff IBM makes.
When nothing vanishes you still have nothing.
That's an extinction sized blockchain in the not too distant future.
Bitcoin bites the dust...
http://www.ino.com/blog/2014/02/bitcoin-bites-the-dust/
I don’t think so. But the developers got a lot of work ahead of them...
I read that in order to start using bitcoin you have to download and initialize your setup which includes data on every transaction that ever occurrred
This is an incredibly bad software idea (and I write software for a living)
Depends what wallet software you use. Some do use a local copy of the blockchain. I (right now) use Electrum, does not.
That's an extinction sized blockchain in the not too distant future.
I have a copy of the blockchain on my laptop, and I just recently sync'd it. The current size now is only 1.1 GB. That quite a ways from 'extinction' size...
The solution to the increasing size, if it ever becomes an issue, could simply be some kind of unalterable archiving of transactions which are only maintained for historical purposes and currently not being removed from the active blockchain data file. Having both an active file and an archival file would speed up transactions while still allowing historical records maintenance.
As for Mt. Gox, we all know it was a mighty tempting and central target for an attempt to destroy Bitcoin. I have no inside knowledge, but would assume that the CEO may have been encouraged to work with governments and bankers to accomplish in their minds, what they consider a 'kill shot' to Bitcoin and damage all Cryptocurrencies in the process or at least buy time by setting them back.
It's indeed a set back and has left many casualties. But give credit were credit is due to who really caused it. To begin with, who shut down Mt. Gox's U.S. direct banking connections? That's when the fiat transfers began in pileup in earnest. Could they have also forced Mt. Gox's CEC to become a pawn to a planned takedown at the time? Perhaps threatening him with jail time or bankruptcy if he didn't go along? Have you noticed how the authorities don't seem concerned that MT. Gox may have stolen their customer's assets?
For those of you remain supporters, don't put all of your eggs in one basket, and if you're going to stay involved, stay involved and adjust to the changing circumstances.
Take a good look at your exposure and look for ways to minimize it. Numerous, smaller, and local exchanges are much harder to take down by TPTB than a few large central ones, as well as direct exchange of good and services using Btc or Crytpo, instead of having to convert to some form of fiat as the actual medium of exchange.
Just my 0.00004 Btc worth (at the current price)...
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