Analysis: The 12 coins with sizzling sentiment through $BTCโ€™s rough week

Well last week was … dramatic.

As $BTC once again teetered toward its annual lows, it largely took the Alt market with it before balancing out.  After peaking last week just before the massive drop, sentiment on Bitcoin crashed before recovering a bit this weekend.

There’s still a fair number of the 154 traders and influencers I follow who remain bullish, but things have cooled considerably.

Let’s look at where we’re at on the market charts.

Note: The chart above shows sentiment for $BTC and a combination of the top 20 Alt coins/tokens as of this writing on CoinMarketCap. 

Both $BTC and the Alt markets are on downtrends in sentiment, and although you could argue the Alts are closer to a bottom, they won’t start performing again until Bitcoin at least levels out.

Bitcoin was very choppy over the weekend, but if we get some steadiness, we could see sentiment on the Alts turn around.

Even with the price drops, sentiment remains high on many alts. Let’s take a look.

The Top Alts

These coins/tokens had the highest power rating in my analysis this week. The power rating is a weighted calculation taking into account sentiment, volume and the number of unique users who mentioned a coin. Generally, I eliminate any coins mentioned by less than 3 individual people as I don’t feel it would be representative of a trend.

You can always find my methodology at the bottom of my posts or pinned to the top of my Twitter page, where you can also find a legend for my charts.

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The Data

As always, here is the data I collected this week.

Coin Sentiment (of 100) Volume Influencers Power Rating
ACBFF 1 1 1 0.5
ACED 92 11 3 86
ADA 39 27 14 67
AE 22 1 1 11
AION 9 1 1 4.5
AKA 67 1 1 33.5
ALQO 77 13 6 82.75
AMD 50 1 1 25
ARN 64 2 2 57
ARWR 13 1 1 6.5
AST 13 1 1 6.5
AUD 22 2 1 22.25
AUR 0 1 1 0
AURA 37 8 5 59.5
BABA 1 1 1 0.5
BAK 22 2 1 22.25
BAT 63 17 8 77.5
BCD 37 8 8 61.75
BCH 20 17 9 56.25
BCN 79 5 4 76.75
BEER 99 1 1 49.5
BIS 67 1 1 33.5
BK 88 1 1 44
BLAS 93 1 1 46.5
BLOCK 64 2 1 43.25
BLPH 97 1 1 48.5
BLZ 50 1 1 25
BNB 67 7 7 75.5
BRAVO 97 1 1 48.5
BTC 45 794 106 72.5
BTCD 12 8 5 47
BTG 3 4 2 32
BTS 67 1 1 33.5
BURST 88 1 1 44
BUST 3 1 1 1.5
BVO 62 3 2 59.75
BWK 81 10 3 80
CACHE 5 1 1 2.5
CAN 95 1 1 47.5
CANN 99 1 1 49.5
CATO 76 4 2 68.5
CDT 13 1 1 6.5
CGC 41 6 2 53
CHAT 60 4 2 60.5
CHF 81 1 1 40.5
CL_F 22 1 1 11
CMT 67 1 1 33.5
CNN 50 3 1 40
COLX 47 7 1 43
CORN 50 1 1 25
COSS 0 1 1 0
CRNC 22 1 1 11
CRON 49 11 4 66
CS 17 4 2 39
CURE 13 1 1 6.5
DADI 50 1 1 25
DART 88 5 1 61.75
DASH 40 14 6 64.5
DAV 9 1 1 4.5
DAX 50 1 1 25
DBC 81 1 1 40.5
DBIX 12 2 1 17.25
DBX 22 1 1 11
DCR 17 4 2 39
DEB 20 10 5 52.25
DENT 22 2 2 36
DEV 37 5 1 36.25
DGB 67 2 2 58.5
DIG 22 2 2 36
DIVC 13 1 1 6.5
DNT 5 1 1 2.5
DOGE 61 53 26 79.75
DOR 81 1 1 40.5
DRGN 20 8 7 52.75
DTB 37 9 4 59
DXY 50 1 1 25
DYN 45 5 1 40.25
ELF 66 3 2 61.75
EOS 22 55 7 58
ETC 45 28 17 70.5
ETH 19 217 67 59
ETHBTC 17 2 2 33.5
ETP 3 1 1 1.5
EXC 50 1 1 25
FB 50 1 1 25
FDR 22 3 2 39.75
FLASH 22 1 1 11
FOR 62 3 2 59.75
FUEL 67 1 1 33.5
FUN 81 1 1 40.5
GBTC 3 1 1 1.5
GFY 47 7 2 56.75
GGP 67 1 1 33.5
GIN 50 1 1 25
GLD 76 6 2 70.5
GNO 88 1 1 44
GO 22 1 1 11
GVT 22 10 4 52
HMNY 36 10 3 57.5
HOT 75 51 18 86.5
HUSH 76 4 1 54.75
ICX 22 18 12 57.75
IGNIS 0 1 1 0
INXT 88 1 1 44
IOTA 41 6 5 60
IOTX 50 1 1 25
IWM 22 1 1 11
IXIC 50 1 1 25
JD 22 2 1 22.25
KEY 97 1 1 48.5
KIN 22 3 2 39.75
KLKS 46 9 2 57.75
KMD 67 8 5 74.5
KRL 81 2 2 65.5
LBC 17 4 2 39
LEND 1 1 1 0.5
LIFE 97 2 1 59.75
LINK 41 2 2 45.5
LISK 50 1 1 25
LOOM 22 1 1 11
LSK 67 2 2 58.5
LTC 22 42 10 58.5
LUV 50 1 1 25
LUX 50 1 1 25
MAID 13 1 1 6.5
MAN 8 2 2 29
MANA 22 3 3 44
MED 22 1 1 11
METM 5 1 1 2.5
MFT 88 7 5 84.25
MKR 88 2 1 55.25
MSP 79 2 2 64.5
MTC 93 1 1 46.5
MTL 21 29 5 55
MUE 17 10 3 48
MVIS 13 3 1 21.5
NANO 22 4 3 45.75
NAV 50 1 1 25
NCASH 66 11 4 74.5
NEBL 5 1 1 2.5
NEO 63 41 21 80
NEXO 67 1 1 33.5
NIO 77 3 1 53.5
NKE 11 3 3 38.5
NPXS 75 27 13 84.75
NXC 13 1 1 6.5
NXS 81 1 1 40.5
NXT 22 1 1 11
OCN 67 12 6 77.5
OMG 67 7 5 73.75
OMNI 87 3 2 72.25
ONT 22 2 2 36
PART 1 1 1 0.5
PASC 22 1 1 11
PCN 3 1 1 1.5
PHR 41 17 3 61.5
PINK 64 2 1 43.25
PIRL 64 2 2 57
PIVX 60 9 2 64.75
POA 41 2 1 31.75
POLY 64 2 2 57
POWR 22 2 1 22.25
PPT 93 1 1 46.5
PUREX 81 1 1 40.5
PXS 22 1 1 11
QKC 81 1 1 40.5
QNT 87 5 4 80.75
QQQ 9 1 1 4.5
QSP 22 1 1 11
QTL 1 1 1 0.5
QTUM 50 1 1 25
RDD 81 1 1 40.5
REN 97 1 1 48.5
RUBY 50 1 1 25
RUPX 40 7 1 39.5
SC 46 6 4 61.25
SCRL 67 5 4 70.75
SCT 50 4 1 41.75
SENT 49 6 4 62.75
SHA 67 2 1 44.75
SHIFT 88 1 1 44
SKYBTC 1 1 1 0.5
SMART 81 5 2 72
SNAP 22 3 3 44
SPX 22 1 1 11
SPY 50 2 2 50
SQ 81 1 1 40.5
SS 5 1 1 2.5
STEEM 22 1 1 11
STONE 49 6 1 43.25
STORM 8 5 5 42.5
STRAT 21 14 7 55.75
SUN 92 2 1 57.25
T 9 1 1 4.5
TEL 60 20 7 76
TFD 13 2 2 31.5
TKS 95 1 1 47.5
TKY 94 2 1 58.25
TLRY 5 2 2 27.5
TNC 97 1 1 48.5
TOMO 80 8 1 60.25
TRC 11 5 1 23.25
TROLL 95 1 1 47.5
TRX 46 43 13 71
TSC 50 1 1 25
TUBE 41 12 6 64.5
UBQ 77 6 5 78
UCNS 93 4 4 82.75
UUU 88 1 1 44
VEN 11 3 2 34.25
VERGE 5 1 1 2.5
VET 48 44 10 71.75
VIA 81 2 2 65.5
VIBE 41 2 2 45.5
VNX 77 3 1 53.5
VTC 22 1 1 11
WABI 13 2 2 31.5
WAN 13 7 3 44
WAVES 39 15 2 56.25
WENDO 50 4 2 55.5
WHIP 50 1 1 25
WYS 81 1 1 40.5
XBT 66 5 2 64.5
XDN 67 1 1 33.5
XEM 95 1 1 47.5
XG 92 2 1 57.25
XHV 22 1 1 11
XLM 39 34 13 67.25
XLQ 22 3 3 44
XLR 44 13 4 64
XMR 62 9 6 73.75
XPTX 41 2 1 31.75
XRP 38 58 17 68
XSN 79 2 1 50.75
XVG 67 9 6 76.25
XZC 81 2 1 51.75
ZCL 61 7 5 70.75
ZEC 13 3 3 39.5
ZEN 46 3 2 51.75
ZER 50 2 1 36.25
ZIL 81 7 2 73.75
ZINC 50 1 1 25
ZNGA 9 1 1 4.5
ZPT 67 1 1 33.5
ZRX 40 12 7 64.75

Methodology

Each week, I scrape the Twitter accounts of some of the crypto world’s favorite influencers, traders and TA folk. I run a sentiment analysis to see which coins they are mentioning positively, neutrally and which they are mentioning in a negative light.

I also take in data on unique influencers, retweets, favorites, volume and strength of feeling in sentiment.

I calculate power by through a weighted formula that takes into consideration volume, number of unique influencers and sentiment. The higher the score, the better, the lower the worse.

This isn’t financial advice, just my own way of trying to make sense of what’s out there. And as with most things, the more data I collect, hopefully, the more interesting it’ll be. This is a work in progress. Please leave suggestions on how to make it better. I imagine if I keep up with it, I’ll be able to expand a bunch of the analysis, but I wanted to start somewhere.

The post Analysis: The 12 coins with sizzling sentiment through $BTC’s rough week appeared first on Coin Insider.

Xapo president claims that 90% of cryptocurrencies will disappear

Ted Rogers, the president of Xapo – a Hong Kong-based company dealing with Bitcoin wallets – has claimed that a shocking portion of the cryptocurrencies currently listed will be wiped out.

Rogers believes that 90% of the tokens currently listed on CoinMarketCap are facing “extinction” if they are not the heavyweight cryptocurrency Bitcoin.

Rogers further stated that now, when the market is down, is a good time to invest in more Bitcoin before it starts peaking again.

In response, Erik Voorhees of Shapesift.io, a company which offers global trading in digital assets, suggested that perhaps the market movements have more to do with the “extinction”.

The idea of Bitcoin dominance – whereby Bitcoin holds more than 50% of the cryptocurrency market trading volume –  has been a topic that investors are not shy about. Tom Lee, CEO of Fundstrat, believes that Bitcoin dominance will make a huge improvement in the cryptocurrency space, saying that “Bitcoin is the best house in a tough neighborhood” and suggesting that investors should focus on the original cryptocurrency and ignore other altcoins.

At the time of writing, almost half of the 15 leading cryptocurrencies including Ripple, Cardano, IOTA, TRON, Dash, NEO, and NEM while Ethereum, Bitcoin Cash, Litecoin, and Monero have seen 80% or more dips.

Whether Bitcoin will naturally emerge as dominant over falling altcoins will be evident quickly within the market movers and we can only wait to see what will happen.

The post Xapo president claims that 90% of cryptocurrencies will disappear appeared first on Coin Insider.

Technical Analysis โ€“ Buy when there is blood in the streets

After a strong rally peaking at $8500 during the month of July, Bitcoin fell over 30% to a low of $6250 on Tuesday this week. As brutal as this sell-off was for Bitcoin, major altcoins were punished even more severely over the same period.

Approximate return from 24 Jul – 14 Aug for major Alts:

Bitcoin

Ethereum

Bitcoin Cash

XRP

Bitcoin’s relative resilience in this latest crypto market bloodbath has shown without a doubt that Bitcoin is still the boss! Whilst all major alts have broken below their previous low points for the year, the Bitcoin support level at $5825 has held firm. Furthermore, for the first time this year Bitcoin market dominance is back over 50% (i.e. the value of Bitcoin is greater than the value of all the altcoins combined).

Looking forward, it is critical that the support zone (orange area) between $6020 and $5750 holds. If there is a clean break of this level then it is likely that Bitcoin will suffer the same fate as the rest of the altcoins. There is a support trendline (blue line) which may offer some respite on the way down, but on the back up the recovery will likely be halted by the previous support zone (orange area) which will now act as resistance. This is the bearish scenario (red arrows).



Crypto Bloodbath – Buy When There Is blood In The Streets by tennant.graeme on TradingView.com

The bullish scenario (green arrows) would see the price hold above the support zone and form a reversal pattern of some kind. It is possible we may see an inverse head-and-shoulders forming as indicated on the chart. Should it develop further it could signal the beginning of some sort of recovery. I will be waiting for confirmation of either a break below support (bearish scenario) or a reversal pattern above support (bullish scenario) before placing any trades.

Whilst it is tempting to apply the adage “Buy when there is blood in the streets” and load up on Bitcoin and some unloved Alts, I feel it is prudent to wait until there is reason to believe that the bleeding has stopped before jumping back into the market.

The post Technical Analysis – Buy when there is blood in the streets appeared first on Coin Insider.

Analysis: Sentiment on 13 coins that are fire right now

Is it finally safe to come out and play?

For the moment anyways, it appears $BTC is in some form of a sustained bull trend — though there’s no indication the broader bear market is over yet.

After a nearly two and a half month bleed, sentiment on Bitcoin finally broke out of a sustained downtrend, piercing a point in my analysis that hadn’t been touched in a long while.

Most of the 149 influencers and traders I follow for my analysis have remained positive on $BTC since it broke through the much vaunted $6,800 barrier last week. Few on that list believe this run signals we’re out of the monster bear market we’ve been gripped in since February, but this is the best we’ve seen sentiment on Bitcoin in quite a while.

The pattern suggests to me that we’re likely experiencing something more along the lines of April’s bull charge than a complete shift in the market. But hey, April was fun.

The Top Alts

Here are the 13 coins/tokens that scored above a 75 on my power rating scale, a weighted formula that takes into account sentiment, volume and unique influencer mentions.  I don’t include coins in my rankings if they have received less than 5 mentions or have been mentioned by less than 3 unique people.

You can always find methodology and a key to my charts at the bottom of my posts, or pinned to the top of my Twitter page @FOMOcryptoDojo.

13. $SCRL

12. $LBC

11. $NEO

10. $SC

9. $KLKS

8. $POE

7. $WAN

6. $ADA

5. $BWK

4. $ZEN

3. $MSP

2. $DOGE

1. $PHR

Coin Sentiment (of 100) Volume Influencers Power Rating
ADA 65 32 16 81
ARDR 43 13 7 66
AURA 56 27 5 73.25
BAT 55 16 9 73
BCH 10 17 12 51.5
BNB 59 11 11 74.5
WYS 92 8 2 80.75
AION 92 4 3 80.5
TUBE 86 4 4 79.75
BTC 34 755 100 67
BWK 77 11 5 81.5
DCR 6 9 5 45.75
DGB 55 22 12 74.25
DOGE 76 24 16 85.75
GIN 94 4 2 77.25
DRGN 15 6 6 49.25
ELF 6 6 3 40.75
ENG 42 7 3 59.25
NEXO 86 3 3 74.75
EOS 16 24 6 53.75
ETC 14 30 14 54.75
ETH 13 78 31 56
HKN 46 7 3 61.25
ICX 44 21 15 69.25
KLKS 76 13 3 78.25
MORE 97 2 2 72.75
ADH 77 6 2 72
EVE 76 6 2 71.5
KMD 59 5 4 68.5
IOTA 78 3 3 70.75
KRL 65 7 3 70.75
OMG 93 2 2 70.75
XTZ 78 3 3 70.75
LBC 78 6 3 76.75
LTC 14 33 17 55.75
MANA 58 15 7 74
MFT 32 22 6 61.5
MSP 93 5 4 85.5
PPI 87 2 2 67.75
NANO 36 8 4 59.25
SS 66 4 3 67.5
GVT 74 4 2 67.25
PASC 86 2 2 67.25
NEO 60 26 14 77.5
LOOM 65 4 3 67
PK 66 7 2 67
OCN 45 10 7 66.25
ALQO 78 3 2 66.5
ONT 13 7 4 47
PAY 46 5 4 62
PHR 92 22 5 90.75
POE 77 7 4 79
DASH 66 3 3 64.75
EXP 66 3 3 64.75
UBQ 62 5 2 63.5
CND 78 2 2 63.25
ZCL 66 4 2 63.25
ZLC 94 4 1 63.25
SC 66 13 9 78
GRV 97 3 1 62
SCRL 66 19 4 76.5
STRAT 56 16 7 73
TFD 14 13 7 51.5
TPAY 44 7 3 60.25
NCP 78 11 1 60.5
SALT 60 4 2 60.25
TRX 41 44 17 69.25
VEN 33 70 23 65.5
VIA 62 13 8 76
RLC 98 2 1 59.25
ATMI 63 3 2 59
ONION 63 3 2 59
IOST 57 4 2 58.75
ATMOS 95 2 1 57.75
BTG 58 3 2 56.5
WAN 62 30 17 79.25
WAVES 42 11 7 65
WTC 40 11 5 63
ELA 42 4 3 55.5
XZC 78 4 1 55.25
XBT 46 5 4 62
XLM 45 31 13 70.5
PURE 43 5 2 54
XLR 54 16 3 67.75
XG 34 4 4 53.75
PIRL 86 2 1 53.25
VET 62 12 1 53
POD 36 4 3 52.5
REP 40 3 3 51.75
XMR 33 5 5 56.5
XRP 10 87 34 54.5
TRBO 75 3 1 51
XMN 75 3 1 51
STR 46 3 2 50.5
TEL 33 6 2 50
ELIX 99 1 1 49.5
OPEN 99 1 1 49.5
XVG 44 13 9 67
BCN 98 1 1 49
LEX 98 1 1 49
BTS 34 3 3 48.75
NFLX 34 3 3 48.75
WPR 34 3 3 48.75
KEY 36 4 2 48.25
ZEC 12 8 5 48.25
BITG 95 1 1 47.5
DIG 40 3 2 47.5
LCS 95 1 1 47.5
MAN 95 1 1 47.5
POWR 40 3 2 47.5
XBY 95 1 1 47.5
XXX 95 1 1 47.5
GLD 46 2 2 47.25
PCN 46 2 2 47.25
SUMO 46 2 2 47.25
ZEN 94 5 3 83.75
DBIX 56 5 1 46.5
INN 66 3 1 46.5
LINK 56 5 1 46.5
SUN 93 1 1 46.5
CRAVE 60 4 1 46.25
ZIL 45 16 10 68.25
SCT 63 3 1 45
TX 63 3 1 45
CTS 57 4 1 44.75
MCO 34 3 2 44.5
ALTS 87 1 1 43.5
DLT 87 1 1 43.5
DNR 87 1 1 43.5
EUNO 87 1 1 43.5
LGO 87 1 1 43.5
MUE 87 1 1 43.5
RDD 87 1 1 43.5
XTO 87 1 1 43.5
ZPT 66 2 1 43.25
LSK 16 4 3 42.5
NPXS 58 3 1 42.5
LEND 36 2 2 42.25
SPD 36 2 2 42.25
ZRX 46 32 14 71
APD 60 2 1 40.25
CORN 60 2 1 40.25
LINDA 60 2 1 40.25
ANON 78 1 1 39
CAH 78 1 1 39
COV 78 1 1 39
DEV 78 1 1 39
ESZ 78 1 1 39
MTC 78 1 1 39
POLY 78 1 1 39
QSP 78 1 1 39
SEND 78 1 1 39
SLV 78 1 1 39
SOMA 78 1 1 39
SONM 78 1 1 39
SPO 78 1 1 39
SPY 78 1 1 39
ACED 36 8 1 38.75
HILL 46 3 1 36.5
MTL 16 3 2 35.5
BBP 36 4 1 34.25
SNM 8 4 2 34.25
ARK 4 3 3 33.75
SENT 7 4 2 33.75
XSN 12 3 2 33.5
MWAT 46 2 1 33.25
ADX 66 1 1 33
APH 66 1 1 33
CRB 66 1 1 33
FUN 66 1 1 33
GC_F 66 1 1 33
INF 66 1 1 33
OST 66 1 1 33
QWARK 66 1 1 33
RCN 66 1 1 33
THETA 66 1 1 33
TOMO 66 1 1 33
WINGS 66 1 1 33
XGS 66 1 1 33
BLZ 16 2 2 32.25
ENJ 16 2 2 32.25
LUX 16 2 2 32.25
PIVX 16 2 2 32.25
QTUM 16 2 2 32.25
STORM 16 2 2 32.25
BELA 36 2 1 28.25
BLOCK 8 2 2 28.25
ECC 36 2 1 28.25
INXT 36 2 1 28.25
LINX 36 2 1 28.25
DYN 15 6 1 27
JEW 11 8 1 26.25
WABI 3 2 2 25.75
NEBL 1 2 2 24.75
BTCC 46 1 1 23
CHAT 46 1 1 23
COSS 46 1 1 23
ETP 46 1 1 23
MBC 46 1 1 23
NAS 46 1 1 23
NIX 46 1 1 23
QKC 46 1 1 23
SPHTX 46 1 1 23
STEEM 46 1 1 23
TRAC 46 1 1 23
TRC 6 7 1 23
VEE 46 1 1 23
VNX 46 1 1 23
YCE 46 1 1 23
POLIS 11 4 1 21.75
STONE 11 4 1 21.75
XP 8 4 1 20.25
INS 16 2 1 18.25
XAU 16 2 1 18.25
AEG 6 3 1 16.5
BIS 12 2 1 16.25
NULS 8 2 1 14.25
SOAP 2 2 1 11.25
ACT 16 1 1 8
AMP 16 1 1 8
ARN 16 1 1 8
AST 16 1 1 8
BBO 16 1 1 8
BLK 16 1 1 8
BNT 16 1 1 8
DTB 16 1 1 8
DYOR 16 1 1 8
EDO 16 1 1 8
GNT 16 1 1 8
GS 16 1 1 8
IONC 16 1 1 8
KICK 16 1 1 8
MCM 16 1 1 8
MENLO 16 1 1 8
MNX 16 1 1 8
NCASH 16 1 1 8
NF 16 1 1 8
NIHL 16 1 1 8
NOS 16 1 1 8
PEX 16 1 1 8
PRL 16 1 1 8
QRL 16 1 1 8
RAIN 16 1 1 8
SAN 16 1 1 8
SNAP 16 1 1 8
TAL 16 1 1 8
TKS 16 1 1 8
UBIQ 16 1 1 8
VTHO 16 1 1 8
XCO 16 1 1 8
REQ 8 1 1 4
VEO 8 1 1 4
XYZ 8 1 1 4
DNT 4 1 1 2
GFY 4 1 1 2
KIN 4 1 1 2
VRC 4 1 1 2
GAME 3 1 1 1.5
XCP 3 1 1 1.5
NIO 2 1 1 1
XTL 1 1 1 0.5
BND 0 1 1 0
DJI 0 1 1 0
MTH 0 1 1 0
VRH 0 1 1 0
WAX 0 1 1 0

Methodology

Each week, I scrape the Twitter accounts of some of the crypto world’s favorite influencers, traders and TA folk. I run a sentiment analysis to see which coins they are mentioning positively, neutrally and which they are mentioning in a negative light.

I also take in data on unique influencers, retweets, favorites, volume and strength of feeling in sentiment.

I calculate power by through a weighted formula that takes into consideration volume, number of unique influencers and sentiment. The higher the score, the better, the lower the worse.

This isn’t financial advice, just my own way of trying to make sense of what’s out there. And as with most things, the more data I collect, hopefully, the more interesting it’ll be. This is a work in progress. Please leave suggestions on how to make it better. I imagine if I keep up with it, I’ll be able to expand a bunch of the analysis, but I wanted to start somewhere.

The post Analysis: Sentiment on 13 coins that are fire right now appeared first on Coin Insider.

How the biggest proof-of-work algorithms for cryptocurrencies compare

Not all coins are created equal.

Some cryptocurrencies require the equivalent of hours of computing time and energy to mine, while others are produced in a matter of minutes.

The term “mining” in cryptocurrencies refers to a collection of techniques to validate transactions known as proof of work (PoW). This is when a computer performs many calculations to try and solve a mathematical puzzle.

These puzzles use are typically based on cryptographic hash functions, which are designed to be one-way. The nature of these functions is exploited so that a miner must make many millions or even trillions of guesses per second to find a solution. It is then usually possible for any other computer to easily check that the solution is true.

In the case of distributed ledger systems like Bitcoin, other computers on the network can easily check someone else’s calculation, and must then build upon it to generate solutions for the next block of transactions.

Each block of transactions is its own mathematically difficult puzzle to solve, and becomes part of the puzzle for the next block of transactions, creating a chain. Hence the term “blockchain”.

By building the next block of transactions on one which came before, a network is able to come to a consensus of which transactions are valid. Proof-of-work algorithms are therefore also referred to as a consensus mechanism.

Other examples of consensus mechanisms is proof-of-stake and Istanbul Byzantine Fault Tolerance, but this article is only going to look only at proof-of-work algorithms, and how they compare.

Among the factors mentioned below will be resistance to mining hardware based on application specific integrated circuits (ASICs).

Application-specific integrated circuits, as the name implies, are chips designed for a specific use, as opposed to general-purpose computers. In the case of blockchains, they are chips designed to perform the calculations of a particular proof-of-work algorithm as efficiently as possible.

Criticism of ASICs is that they are expensive and make it difficult for people to participate in mining a blockchain without a significant capital investment. They also skew the ability mine a particular coin in favour of companies who can develop their own ASICs.

While some mining algorithms are designed with ASIC resistance in mind, it is worth keeping in mind the comments the lead developer of Sia made earlier this year: “At the end of the day, you will always be able to create custom hardware that can outperform general purpose hardware.”

SHA–256 — Bitcoin, Bitcoin Cash

What better place to start with a comparison of algorithms than where the cryptocurrency craze all began — Bitcoin.

The Secure Hash Algorithms are a family of cryptographic hashing functions published by the National Institute of Standards and Technology.

Short for Secure Hash Algorithm, the first variants of the SHA family, SHA–0, SHA–1 and SHA–2, were developed by the U.S. National Security Agency. SHA–256 and its bigger brother, SHA–512, are part of the SHA–2 family.

SHA–256 is not designed to be ASIC resistant, and ASICs to mine Bitcoin are readily available.

Scrypt — Litecoin, Dogecoin, Neo

Scrypt was designed to make it more difficult for specialised hardware like ASICs to be used to crack passwords that were hashed using the algorithm.

It did this by using a large amount of memory compared to similar functions, making it more expensive for an attacker to target.

However ASIC-based miners for cryptocurrencies which use Scrypt, like Litecoin, have been available since at least 2014.

Ethash — Ethereum, Ethereum Classic

Ethereum’s proof-of-work algorithm is a modified version of Dagger-Hashimoto, which was designed to be memory hard and ASIC resistant.

This means it tends to favour graphics cards with higher memory bandwidth, and has been the domain of people who want to mine a cryptocurrency with standard computer hardware (like high-end graphics cards) rather than specialised components.

Bitmain has produced a specialised Ethereum miner, but the creator of the platform, Vitalik Buterin, surmises that the “ASIC” is just an optimised regular computer with non-essential components stripped out.

Equihash — Zcash, ZenCash, Bitcoin Gold

Similar to Ethereum, the developers of Zcash created a memory-oriented proof-of-work algorithm for their cryptocurrency to make it ASIC resistant.

It uses Blake2b in the proof-of-work, and as a key-derivation function.

Bitmain has sold ASICs for Equihash, defeating its originally stated goal of democratising mining, rather than having it limited to only those who could afford specialised gear.

Blake, Blake2, and Blake2b — Siacoin, Decred

Blake was an entry into the competition by the U.S. National Institute of Standards and Technology for a new SHA algorithm to complement its older SHA-1 and SHA-2 standards.

It made it to the final round, but ultimately lost to Keccak.

The algorithm is fast, and was not designed specifically with resistance to ASIC mining in mind.

Bitmain has released as ASIC miner for Blake2b-based coins. The developers of Siacoin themselves also launched an ASIC project called Obelisk about a year ago, and reported in detail about their findings of the state of the mining space.

Keccak — SmartCash, MaxCoin

Keccak won a competition in 2012 to become SHA–3, the next variant of the Secure Hash Algorithms family.

It proved to be faster than all other entrants to the competition, and faster than SHA–2 and SHA–1.

While Keccak was not designed to resist ASIC mining, it was built to resist cryptanalysis and brute-force attacks with specialised hardware like ASICs.

Keccak is therefore currently considered ASIC resistant, and there are no ASICs on the open market which target the algorithm.

CryptoNight — Monero, Bytecoin

CryptoNight was designed to be ASIC-resistant, and accessible. The aim was to close the gap between miners who only have access to consumer CPUs and can’t afford hardware like graphics cards and ASICs.

This is to foster more egalitarian mining, and greater decentralisation.

However, Bitmain announced in March that it developed an ASIC for the algorithm and was going to sell a specialised miner called the Antminer X3.

In response, the developers of Monero announced an emergency fork to update its hashing algorithm. They also announced that they will be forking Monero twice a year to try and ensure that it remains ASIC resistant for as long as possible.

X11 — Dash

X11 is an algorithm originally built for Dash which uses multiple rounds of 11 different hashes: Blake, BMW, Groestl, JH, Keccak, Skein, Luffa, Cubehash, Shavite, SIMD, Echo.

It was not designed to be ASIC resistant, and ASICs for X11 are available from several manufacturers including Bitmain, Baikal, iBelink, Innosilicon, and Pinidea.

Variants of this idea—in the form of X13, X15 and X17—are used by several other cryptocurrencies.

Multi-algorithm coins — Verge, Myriad

Where X11 uses multiple rounds of a number of different hashing algorithms to mine a coin, there are also coins which allow many different algorithms to be used to mine them.

The aim is to allow CPU, GPU, and ASIC miners a fair opportunity to mine the coin, and enhance the security of the cryptocurrency.

Essentially, multi-algorthm cryptocurrencies adjust the difficulty of mining their tokens for each algorithm independently to prevent one algorithm from becoming dominant.

In theory, this should also make “51% attacks” more difficult. Such attacks are possible when one person or group control the majority of the hashing power for a coin, allowing them to rewrite the blockchain as they see fit.

Verge supports Scrypt, X17, Lyra2rev2, Myr-Groestl, and Blake2s.

Myriad supports SHA256-D, Scrypt, Myr-Groestl, Skein, and Yescrypt.

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SEC mock fake ICO, Jack Dorsey advocates Bitcoin, CCID reveals blockchain ratings โ€“ Daily News Roundup

The SEC exchange their usual security tone for a mocking one

The US Securities and Exchange (SEC) has released an announcement which explicitly mocks fraudulent initial coin offerings’ websites.

In the press release, the SEC announced that they have set up a website, HoweyCoins.com, with the sole function to emulate a fake coin offering site. The purpose of the mockery is to show investors what it is to watch out for in scam coin offerings – the organization’s page has a link to a “Buy Coins Now” page which automatically leads to tools and tips from regulatory officials in order to equip investors in ways to avoid being scammed.

Who knew regulatory authorities could have such a delightfully malicious sense of humor?

Jack Dorsey thinks Bitcoin is a well-rounded way to the future of Square

The CEO of Square Jack Dorsey hopes to see Bitcoin as the Internet’s default currency.

In March, Dorsey expressed his opinion that bitcoin would dominate the web and he still maintains this belief. The CEO has offered that he is very interested to see how this will affect Square and the direction his company will ultimately take.

He also admitted that the topic is a point of debate at the company, but holds that bitcoin – and open sourced blockchain technology – has inspired some of the fundamental ways in which Square look at the market.

[There’s] still a lot of skepticism and a lot of debate and a lot of fights. But that’s where the magic happens, where creativity happens”.

Rated! The CCID reveals the first-ever blockchain evaluation index

China’s Center for Information Industry Development has released the first-ever international blockchain technology ranking index.

The results are in and they show the index of the second-generation blockchain technologies, showing the companies assessment based on basic technology, applicability, creativity and total index which tallies up to reveal the total position in rank.

The first released results place the top five second-generation blockchain as follows:

  1. Ethereum
  2. Steem
  3. Lisk
  4. NEO
  5. Komodo

It is reported that new findings on the index will be issued on a monthly basis and will be able to track the direction in blockchain technology’s development and growth in innovation.

The post SEC mock fake ICO, Jack Dorsey advocates Bitcoin, CCID reveals blockchain ratings – Daily News Roundup appeared first on Coin Insider.

The Blockchain Awakens: Imagining cryptocurrencies as Star Wars characters

When Star Wars (today retroactively titled A New Hope) first premiered in 1977, the emergence of what would become one of the most celebrated science fiction franchises of all time reignited not only a passion for fantasy, adventure, and mysticism, but further lead revolutions in both sound design, practical effects, and, more broadly speaking, the cultural adoption of film.

The paradigm shift Star Wars brought with it to cinema isn’t difficult to compare with the impact of cryptocurrencies on modern monetary systems. Cryptocurrencies and blockchain technology propose a shift in thinking that empowers a new generation of personal finance and peer-to-peer trade.

Like Star Wars, cryptocurrency hinges on an intersection where technology meets humanity, culture, and belief – and it’s not without a wry smile that we admit that like the story of a galaxy far, far away, the cryptocurrency world has brought with it its own slate of characters peppered with personas ranging from the heroic, the ominous, and at times, the plain silly.

Warning: If you haven’t watched the Star Wars saga, there may be some key spoilers in the content below.

Bitcoin: R2-D2

Though R2-D2 may be far from the most significant character in the Star Wars saga, everybody’s favorite trashcan-on-legs droid has witnessed the entirety of eight (and soon to be nine) feature films that comprise the core Star Wars story. There’s the argument to be made that Star Wars could be a story of R2-D2’s telling, given the plucky droid’s presence throughout the saga, his interaction with main characters, and his unwavering ability to save the day throughout many key moments in film.

Arriving on screen as the creation of an unknown creator, R2 succeeds in driving Star Wars’ plot forward – whether it be through acts as grand as saving starships or as simple as unlocking doors.

Bitcoin‘s emergence as the first decentralized, peer-to-peer money represents the genesis from which thousands of other cryptocurrencies have leaped forward – enabling a new belief in currency through reliance on cryptography, privacy, and technical soundness. Like R2-D2, had Bitcoin not existed, there may be no Star Wars story – or cryptocurrency ecosystem – to talk about.

Star Wars

Bitcoin Cash: C3-PO

R2-D2 needed a plucky companion with talents he didn’t possess, and George Lucas coupled the intrepid droid with C3-PO; the erstwhile protocol droid with talents in translation, functional modification, and incessant bickering with his partner.

Having been built by Anakin Skywalker, C3-PO serves the Star Wars saga as both a source of humor and context – extrapolating different dimensions to key plot scenes and bridging characters and audiences together.

That’s not to say we’re claiming that Roger Ver might be Anakin Skywalker in the world of cryptocurrency, but every hero needs a villain…

Bitcoin Cash, as the foremost hard fork to emerge from Bitcoin Core, is the scion of both love and scorn. Executing an alternate scaling path to the approach championed by Bitcoin Core, Bitcoin Cash brings with it inter-operability, several notable use cases, and a refreshing reminder that sometimes cryptocurrency developers just don’t have all the answers – something that C3-PO has proved especially good at in the Star Wars saga.

Ethereum: Darth Vader

Anakin Skywalker’s story in Star Wars is one that marks hope, a fall from grace, and eventual redemption as the Chosen One; a title which several cryptocurrency investors tout when referring to the Ethereum platform.

Like Anakin Skywalker (and his darker half, Darth Vader), the concept of Ethereum has enabled a wider revolution in blockchain platforms that could feasibly intersect with everyday life in many ways. Just as Anakin Skywalker was prophesized to defeat the Sith and bring balance to the Force, so to might Ethereum be the lynchpin that decentralizes applications and, more broadly, the web.

Though not explicitly a moral debate, the character’s transition from man to machine brings with it interesting parallels to Ethereum’s planned change from proof-of-work to proof-of-stake mechanics.

XRP: Emperor Palpatine

Courting foundations on Julius Caesar and other dictators, Star Wars’ Emperor Palpatine (in the prequels, Darth Sidious) represents one of film’s best-loved (and most-hated) machiavellian masterminds, whose scheme underpins both a galaxy-wide war and later a galaxy-wide despotic regime.

Ripple’s XRP is both loved and hated for similar reasons; rolling together the best and most applicable aspects of blockchain technology and the cryptocurrency ecosystem, yet meeting modern banking in a way that many cryptocurrency die-hards find abhorrent.

Palpatine’s ability to both play the likes of the Jedi, Republic, and later the Empire reflect just some of XRP’s utility and usability – where its speed and efficiency has rapidly found a home in several banking use-cases to the furor (and in some cases, admiration) of cryptocurrency enthusiasts.

EOS: Luke Skywalker

The principal hero of the original Star Wars trilogy, Luke Skywalker is the son of Anakin Skywalker (Darth Vader) – and the dynamic between the two is more than slightly reminiscent of that between Ethereum and EOS.

Similar in nature to Ethereum, EOS is a platform for decentralized applications that provides services like user authentication, server hosting, and cloud storage. 

If Star Wars’ original trilogy is the story of sons transcending their fathers, EOS’ relationship with Ethereum bears a close mirror – in perhaps the duo’s most remarkable difference, EOS already functions through proof-of-stake rather than through proof-of-work mechanics.

Like Luke Skywalker, EOS has quickly become a favorite among cryptocurrency investors – propelling the platform’s market cap to well over $15 billion USD.

Litecoin: Rey

Arriving on scene as a lovable scavenger with prodigious talents, Rey takes the role of the principal protagonist of the Star Wars sequel trilogy – rounding together Disney’s new take on the ethos of the original Star Wars trilogy and the technical vision of its prequels.

Litecoin launched and gained a loyal fanbase given its technical improvements over the Bitcoin Core network as well as its ability to maintain steadfast support and values despite tumultuous markets.

Rey’s quick ascension as the newest (and last?) Jedi closely mirrors Litecoin’s journey to becoming a fan-favourite cryptocurrency – with many touting the speed, efficiency, and integrity of ‘the silver to Bitcoin’s gold’ as leading reasons as to why the cryptocurrency may see many new adoption cases in the near future.

Dash: Princess Leia

The secret daughter of Anakin Skywalker and the adoptive daughter of royalty, Princess Leia continues to inspire a generation of strong female leads in cinema – a factor not dissimilar to Dash‘s debut in the cryptocurrency market space.

As a young senator and later leader of the Rebellion and Resistance, Leia counsels support from both the official, the vulnerable, and the brave at once – championing virtues of democracy and freedom.

Dash’s presence on the market – and its direction under the Dash Foundation – has seen the digital currency integrated as a solution for traders and investors alike in emerging markets under the direction of authoritative governments, such as Zimbabwe.

Dash’s employ of its Private Send feature carves a similar profile to the early double-life led by Leia as both a senator and leader of the Rebellion, while its use of masternodes derives strong support form its community in a manner not dissimilar to Leia’s command of the Resistance in The Force Awakens and The Last Jedi.

NEO: Kylo Ren

If Ethereum were Darth Vader, it’d make sense that NEO took on the role of Kylo Ren – a fellow practitioner of the dark arts, aiming to emulate its forbear, all the while under the direction of a secretive and authoritative government.

Like Kylo Ren, NEO is a newer figure that has managed to quickly develop a dedicated following. The blockchain platform, like Ethereum, serves to create a scalable network of decentralized applications, and as per Ethereum’s aspirations functions through proof-of-stake mechanics.

Though NEO might well lack Kylo Ren’s ferocity and volatile temper, the cryptocurrency has succeeded in quickly garnering acclaim as a favorable avenue for investors in a fashion that quietly resembles Kylo Ren’s reception with the Star Wars fanbase.

Zcash: Boba Fett

The last word in icy coolness, Boba Fett inspired a generation of Star Wars fans following his debut in The Empire Strikes Back. Despite facing a quick end at the hands (or tentacles?) of the Sarlacc Pit in Return of the Jedi, the character went on to meet an expanded telling in the saga’s prequel trilogy.

While Zcash may not be headed for a similar pit any time soon, the appeal of the privacy-focused cryptocurrency has echoed much of Boba Fett’s initial appeal – anonymity and mystery.

Leveraging zero-knowledge proofs to anonymize the relationship between providers, verifiers, as well as transacting parties, Zcash has quickly risen to prominence as one of the foremost privacy coins on the market – tussling with the likes of Monero.

The comparisons between Zcash and its bounty hunter likeness only increase when one considers the that the legions of forks that have arisen from the cryptocurrency aren’t too dissimilar from the pool of clones Boba Fett emerged from in the first instance.

Dogecoin: Jar Jar Binks

Alright, we couldn’t resist.

Dogecoin is, at times, the marveling factor and laughing stock of the cryptocurrency community – an erstwhile ‘joke’ coin that has somehow succeeded in developing a market cap worth more than half a billion US Dollars.

Jar Jar Binks, praised and reviled as The Phantom Menace‘s worst introduction, has similarly gone on to carve out an abrasive profile amongst Star Wars fans.

Met with skepticism and revulsion upon the release of the first of the Star Wars prequels, Binks has gone on to become the center of mystery – with several fans wondering if the character was not intended for a wider role than the non-stop barrage of infantile jokes that informed The Phantom Menace.

Dogecoin, similarly, has gone on to find an awkward place at the heart of the cryptocurrency community – with several ICOs moving to accept the digital currency as tender for the release of future tokens.

Star Wars, its characters, trademarks and licenses are the property of Lucasfilm and The Walt Disney Company.

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