I've noticed that the quality of 0xBTC threads has dropped pretty rapidly these last few weeks. It looks like the people who understand are already invested and tired of explaining, and the ones who don't understand yet are unwilling to do research of their own. I've participated in quite a few drawn-out 0xBitcoin threads over the course of the last few months, but since work has been piling on, then I've been cutting my time on Jow Forums.
This state of affairs is unlikely to change in the near future, so I decided to use this day off to create a thread containing all of the facts about 0xBitcoin that can be referenced in the future. If you are undecided on 0xBTC, then I suggest reading through it and coming to your own conclusions. If you are already decided on 0xBTC and think it's shit or a scam, then feel free to try to refute any of my points.
What 0xBTC is: 1. The first PoW mineable token It's the first PoW asset that does not have a blockchain of its own. Instead, it relies on the Ethereum network for security, while the PoW is used only for distribution. This might seem like a useless gimick at first, but it has very deep-reaching implications upon further inspection.
2. The first trustless asset on Ethereum Every other ERC20 token that came before 0xBitcoin was created by a single entity. That single entity started out with the total supply of the tokens ever to exist in their 1 wallet. They then proceeded to distribute them in some manner, whether by ICO, airdrops or other means. Since we do not know who owns what Ethereum address, then we have no way of knowing how many they secretly sent to themselves or their friends in addition to the vast amount of the supply most projects openly keep.
This means that you have to trust the token deployer not to screw you over by diluting the tokens you hold by dumping a massive surplus on the market that they've secretly stashed away. 0xBitcoin started out with all of the tokens held by the smart contract and the only way to obtain the tokens is to submit PoW, which can not be cheated. The only thing you have to trust is the code, which is openly available for anyone to check and see that it's valid and contains no backdoors. These qualities make it suitable to be a universal medium of exchange on the Ethereum network.
3. First second-layer PoW token on a (soon-to-be) PoS network 0xBitcoin will combine the best aspects of PoS and PoW once Casper is implemented. PoS is ideal for security, since the cost to attack it is much higher than attacking a PoW coin due to slippage and the risk of conducting an attack is much higher due to the fact that you will lose your whole investment if you fail, in contrast to an attack on a PoW network where you will just have wasted some electricity if you fail. You will still get to keep your principal investment after failing to attack a PoW network, which is the hardware. If you fail to attack a PoS network, you will lose everything that you've invested.
At the same time, distribution is very skewed in a PoS system, since it only rewards those that already have some of the asset. The largest flaw with it, however, is that it incurs no cost to obtain new coins. That means that there is no built-in incentives for stakers to sell, meaning that they can just continue hoarding to infinity. With PoW, miners are forced to sell to cover the cost of mining, as well as to upgrade their rig as mining gets more competitive, resulting in a much more balanced distribution.
0xBitcoin takes the security of a PoS baselayer system (ETH) and combines it with the much more balanced distribution of a PoW system.
Grayson Edwards
4. The first PoW asset that does not rely on miners Since 0xBitcoin lives on the Ethereum network instead of its own blockchain, then that means that its hashrate can drop to 0, and it could still be transacted with as well as ever. When all tokens are mined out, then no more energy will ever need to be contributed towards it, unlike all other PoW coins. This problem is pretty far off, but sooner or later the diminishing return on mining other PoW coins will constitute a security and sustainability problem for them, unless their price keeps going up forever to make up for the increased cost of mining.
This point also means that 0xBitcoin is immune against 51% (or 99% for that matter) attacks against it. One would have to attack the whole Ethereum network to double spend 0xBTC. As such, it is the first PoW asset that's immune to the death spiral, as well as completely immutable. The rules governing it can never change.
5. Programmable 0xBitcoin mining can be programmed. One planned use for it is a decentralized method to delegate authority for the LavaWallet - a relayer network being built by the creator of 0xBitcoin to allow people to transfer ERC20 tokens without having to hold Ether in their wallets. Instead of any central authority appointing privileges to others, everyone will be able to compete for them by mining 0xBitcoin. This is a rather new concept, and new usecases for it will certainly be thought up as 0xBTC draws more developers to it.
6. Compatible with smart contracts This should be obvious from all of the talk about the Ethereum network, but it's signifcant enough to warrant a separate mention. It is not possible for a smart contracts to send some amount of Bitcoin from one party to another upon the fulfillment of some set criteria. That is because the Ethereum network can not "understand" Bitcoins, since they are on a different blockchain. 0xBitcoin is the first PoW asset that can be used in such contracts.
What 0xBitcoin isn't: 1. Centralized The contract deployer started without a single 0xBitcoin and had to mine it to obtain some just like everyone else. He has no control over the contract and can never change a single thing about it. He owns it just as much as everyone else.
2. Premined The contract was deployed with a premine of 0 and publicly announced the very same day on BitcoinTalk. The first Reddit thread about it was created the day after deployment, and the first Jow Forums thread was created a week after deployment. No on had an unfair edge in mining it, and as such, no single entity has an ungodly amount of it to dump on everyone else.
3. A scam Everything is controlled by the smart contract. The smart contract can not be changed, and it's been vetted and checked very thoroughly over the last 7 and a half months. It contains no backdoors, the developer has no advantage over anyone else - it's literally impossible for it to be a scam.
And finally, if anyone's interested in more information, then most of the discussion is on Discord, so I'll post the invite link to that as well. discord.gg SLASH JGEqqmS
I could go into a lot more detail about the philosphical and technical aspects of why I think 0xBTC is a good investment, but this thing is a wall of text as it is, so if you're curious about anything else, then feel free to ask.
" This problem is pretty far off, but sooner or later the diminishing return on mining other PoW coins will constitute a security and sustainability problem for them, unless their price keeps going up forever to make up for the increased cost of mining."
Stopped reading right there. You are the most fucking annoying piece of shit shill on this entire board, but that statement seals the coffin, you do NOT understand crypto and PoW. If you're so confident that your erc-20 shitcoin is going to the moon (pro-tip, it's not) then STFU and fuck off. You are staying the board with these shit tier threads
The rest of us will be there be buying link, xmr and btc
Mining Bitcoin can not be profitable forever. This means that many miners will have to stop mining because they're bleeding money. You are correct in that difficulty will adjust down in order to accommodate these lulls in price, but what you do not account for is that if mining becomes unprofitable for a majority of miners, then that will severely compromise the security of the network. If the hashrate drops to 20% of what it used to be, then that means it only takes for 25% of the former hashrate to jump in and conduct a 51% attack.
The hashrate has only been growing recently, even during this bear market, but if it were to drop enough that there is a "reserve" of miners who have the hardware and knowledge to mine, but aren't currently mining, then they only need to wait for an opportune moment to strike.
Even if you disregard all of this future prediction stuff, then immunity to 51% attacks for a PoW token is a very novel innovation in and of itself.
Daniel Scott
nice writeup!
Nathan Davis
bitcoin gold was 51% attacked recently - PoW security is a real issue
>I've noticed that the quality of 0xBTC threads has dropped pretty rapidly these last few weeks. It looks like the people who understand are already invested and tired of explaining, and the ones who don't understand yet are unwilling to do research of their own
> stopped reading right there.
Landon Moore
You're a fucking retard, congrats on this, seriously. Now fuck off brainlet and stop spamming this shitcoin
