Will The Bitcoin Term “Gox’ed “ Be Re-Coined After Prosecution Rests?

Bitcoin has brought with it a plethora of new terminology. Not too long ago, when someone said “hash”, mathematics was not the first thought to enter most people’s minds.

The collapse of Mt. Gox in 2014 brought about the term “Gox’ed”. Millions of dollars’ worth of Bitcoin (not so?) magically disappearing and reappearing in “old wallets” enraged thousands of people.

Protection by bankruptcy filings, lack of a common definition of what type of asset Bitcoins were, and shear geological distance made the situation even more frustrating for people that had placed their life’s savings in the hands of the French born 30 year old Mr. Karpeles.

Some investors even went as far to fly to Japan to and protest the disappearance of their investment outside the office of Mark Karpeles and his, at one time the largest, Mt. Gox Bitcoin exchange.

It would appear now, to be Gox’ed means to be misled, spoofed, and flat out lied to and robbed in the fantastical way.

Some estimations place the missing Bitcoin from Mt. Gox as high as 7% of the total Bitcoins in existence. Hundreds of millions of dollars surly found its way somewhere and someone does know the answers to the question of “where did it all go?”

Finally an arrest was made and the glimmer of hope for answers is finally looming on the horizon.

The impact of the collapse of Mt. Gox was greater than just the tragic losses investors suffered. It, along with the numerous other alleged hacks, glitches, and unexplained “magic” events leaving common people holding the bag, has cast a great shadow of distrust onto the entire industry.

Events like this prosecution and forth coming sentencing are a great sight for honest people. I hope the term Gox’ed gets further defined as paying the price for an attempt of theft in such a grand scale.

Many honest people would like to see the “You got Gox’ed” phrase be re-coined to mean “justice, however long it takes, will be served.” In history, time has had a way of sifting out the evil doers.

Unfortunately, Japanese courts have now ruled against a man seeking compensation over lost Bitcoins, stating the digital currency cannot be owned.

The Tokyo District Court said Bitcoin was “not subject to ownership,” effectively dismissing the lawsuit seeking repayment.

Judge Masumi Kurachi ruled that Japanese law only allowed for proprietorship of tangible entities that occupy space and which allow for exclusive control.

As such, Bitcoin could not be owned. An example the judge gave was that transactions between users must involve a third party and therefore exclusive control over Bitcoins was not possible.

This could be what ultimately ends up being the case for the Mt Gox debacle if left to the Japanese courts to decide, so brace yourself because this may just be the price we pay to have freedom of controls in our financial systems.

Welcome to the “Wild, Wild West” of digital currency!!


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Founded August 10, 2014 , Burstcoin [BURST] uses a unique algorithm called Proof of Capacity or (PoC), which utilizes unused hard disk drive space instead of a processor or graphics card while mining for BURST. Miners can pre-generate chunks of data known as ‘plots’ which are then saved to the hard disk. The number of plots stored is effectively the mining speed. Every block a miner skims through saved plots and calculates an amount of time until it is able to mine a block if another block hasn’t yet been found. Plots only need be generated once with a computer processor unit (CPU) or graphic card (GPU) making BURST hardware and energy friendly.

BURST is for everyone, ASICS will never be more efficient than spare hard disk space running mining operations in the background while a PC is powered on.

The way BURST works is like this, miners generate and cache chunks of data known as ‘plots’, which are divided into 4096 portions known as ‘scoops’.

Plots are generated by taking a public address and a nonce, then hashing it, pre-appending the resulting hash, repeating the hash-pre-append cycle many times, and then hashing the whole thing and xor’ing the last hash with the whole thing.

Lots are staggered together so chunks of the same scoop number are together, then written to disk.

Each block has a generation signature which is derived only from the previous block’s generation signature and miner, so it is difficult to manipulate.

When mining, the scoop number to be used for a block is derived from the generation signature and the block height, so the miner reads all relevant scoops (each plot will have 1 relevant scoop, and staggering allows for larger sequential read with less seeking). Only 0.024% of the stored data will need to be read each block.

The generation signature is hashed with each scoop. Eight bytes are taken from the hash, then divided by a scaling factor (inverse difficulty). The resulting number is a number of seconds. If that many seconds passes since the last block without a new one, the address/nonce combination used to generate that plot/scoop is eligible to announce a new block.

Then the miner’s hardware can just sit idle until a new block is announced. The address/nonce is included in the block as proof of eligibility, and the block is signed by that address.

Technically, this mining process can be mined PoW-style, however mining it as intended will yield thousands of times the hashrate, and your hardware will sit idle most of the time.

Continuously hashing until a block is found is unnecessary, as waiting long enough will cause any nonce to eventually become valid.

BURST is not only the first Proof of Capacity (PoC) currency additionally there are no clones are in existence as of yet,  but since the launch in mid-August 2014 the main developer has put immense effort on improving BURST. Often the coin is referred to as simply BURST, as that is the handle on the exchanges.

Recently, with the announcement of BURST being the first and only HDD-mining coin, they have also announced that it has now also become the first cryptocurrency to implement Smart Contracts within a live environment.

You have probably heard of Smart Contracts as Ethereum and Counterparty have been in the limelight with regards to implementing Smart Contracts which both are still in development. However, you can now start writing Smart Contracts with BURST today.

Users today are discovering that Bitcoin is not anonymous but pseudonymous, able to be tracked and traced by third parties with the right resources.

BURST has now also addressed this problem with a solution known as atomic cross chain transactions which is considered to be decentralized trading between different currency platforms. Users can trade BURST with a coin that provides a mixing service for the purposes of privacy, then sends it right back to a new BURST account with no third party interference. Recently this has been successfully achieved by both BURST and QORA another second generation cryptocurrency.

As BURST enters it’s second year it looks as if developers have big plans and are celebrating the 1 year anniversary of BURST by unveiling these new developments to start the new year off in the right direction.

As a community let’s all wish BURST a Happy 1st Birthday and give the new HDD wallets a spin and start cutting back on those high electric bills!!