Author: The Count

  • What’s the difference between a MAC and an HMAC?

    A message authentication code (MAC) is produced from a message and a secret key by a MAC algorithm. The MAC algorithm is a one-way function. This means it’s impossible to decode the secret from the MAC. This also means that a MAC using the same message and a different secret will look completely different. Why are MACs […]

  • Why is it difficult to cancel a Bitcoin transaction?

    Bitcoin offers the highest assurance of transaction finality of any asset known today. It is impossible to undo a transaction with multiple confirmations. However, it can take weeks or even months for a broadcast transaction to confirm if it is not sent with a competitive fee. A signed and broadcast transaction quickly replicates in the […]

  • Install charge-lnd and Put Routing Fees on Autopilot

    In this article, you’ll learn how to automatically manage your channel fees with charge-lnd. The Lightning Network is a free market for routing and liquidity. It’s up to each individual node to set the price of their node’s liquidity. Node operators do this by defining the base fee and the fee rate for each one […]

  • The Bitcoin Network Security Optimization Problem

    Bitcoin will be successfully attacked because its network security is trending down despite rising hash rate. It must suffer an assault (perhaps multiple blows) in order to correctly price the minimum cost of security. Proof-of-work systems with a decreasing issuance schedule are performing a security budget optimization in real-time. Let me explain… Proof-of-Work Incentive Structure […]

  • How to Batch Open Lightning Channels and Start Routing for Profit

    If you operate a Lightning Network routing node for profit, one of your biggest costs are channel opening fees. These channel opens are just regular 2-of-2 multisig bitcoin transactions. Exchanges have been batching bitcoin transactions for years to save significantly on network fees. You too can see similar savings by batch opening lightning channels on […]

  • Federations on Bitcoin are the Decentralized Future

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