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Announcing the new MultiChain wallet

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An important step forwards for performance and scalability

After two months of intensive development and testing, we’re proud to release the latest alpha of MultiChain, with a completely rewritten in-node wallet. This new wallet transforms the performance and scalability of creating, receiving and storing transactions in MultiChain.

Before we get into the details, let me provide some context. When we began developing MultiChain, we made the decision to use Bitcoin Core, the standard node for the public bitcoin network, as a starting point. In programming terms, this means that MultiChain is a “fork” of the bitcoin software. Our primary reasoning was that bitcoin was (and continues to be) the highest valued and most battle-tested cryptocurrency ecosystem, by quite some way.

On the plus side, this decision helped us get to market quickly, compared to coding up a blockchain node from scratch. Despite the many differences between public and private blockchains, they share a large amount of technical common ground, including the peer-to-peer protocol, transaction and block structure, digital signature creation and verification, consensus rules, key management, and the need for a node API. Forking from Bitcoin Core allowed us to leverage its maturity and focus on what MultiChain adds to blockchains – configurability, permissioning and native asset support. As a result, we were able to release the first alpha in June 2015, just 6 months after starting development.

However, alongside these benefits, we also had to accept the fact that some aspects of Bitcoin Core are poorly architected. While they work just fine at small scales, their performance degrades dramatically as usage grows. With the public bitcoin network still restricted to a few transactions per second, this won’t be an issue for most Bitcoin Core users for a long time. But with private blockchains aiming for hundreds or thousands of transactions per second, we knew that, sooner or later, these bottlenecks would need to be removed.

Bitcoin Core’s wallet

The “wallet” within Bitcoin Core was always the most crucial of these pain points. Its job is to store the transactions which are of particular relevance to the node, because they involve a blockchain address which it owns or a “watch-only” address whose activity it is tracking. For example, every transaction which sends funds to or from a node must be stored in that node’s wallet. And every time a node creates a transaction, it must search for one or more “unspent outputs” of previous wallet transactions which the new transaction will spend.

So what’s wrong with the wallet we inherited from Bitcoin Core? Actually, three things:

  • All wallet transactions are held in memory. This causes slow startup times and rapidly increasing memory usage.
  • Many operations perform an inefficient “full scan” of every transaction in the wallet, whether old or new.
  • Every transaction in the wallet is stored in full, including any arbitrary “metadata” which has no meaning from the node’s perspective and is already stored in the blockchain on disk. This is very wasteful.

The consequence is that, with around 20,000 transactions stored, Bitcoin Core’s wallet slows down significantly. After 200,000 or so, it practically grinds to a halt. Even worse, since a MultiChain blockchain allows up to 8 MB of metadata per transaction (compared to bitcoin’s 80 bytes), the wallet’s memory requirements can balloon rapidly even with a small number of transactions.

It’s important to clarify that these shortcomings apply only to Bitcoin Core’s wallet, rather than its general transaction processing capacity. In other words, it can comfortably process and store millions (or even billions) of transactions which don’t relate to its own addresses, since these are held on disk rather than in memory. For example, many popular bitcoin exchanges and wallets use Bitcoin Core as-is, but store their own transactions externally rather than inside the node.

MultiChain’s new wallet

We could have made the same demand of MultiChain users, to store their own transactions outside of the node. However this didn’t feel like the right solution because it would greatly complicate the setup and maintenance for each of a chain’s participants. So instead, we bit the bullet and rewrote the wallet from the ground up.

How does the new wallet differ? If you have any experience with databases, the answers may be obvious:

  • Rather than keeping the wallet transactions in memory, they are stored on disk in a suitable format, with transactions of interest retrieved when necessary.
  • Instead of performing full wallet scans, the transactions are “indexed” in various ways to enable those which fulfill particular criteria to be rapidly located.
  • Any piece of transaction metadata which is larger than 256 bytes is not stored in the wallet. Instead, the wallet contains a pointer to that metadata’s position in the blockchain itself.

In other words, we’ve rebuilt the in-node wallet to be properly database-driven (using LevelDB), rather than relying on a naïve in-memory structure that can’t be searched efficiently. Unsurprisingly, the difference (as measured on a 3.4 GHz Intel Core i7) is rather dramatic:

MultiChain wallet transaction throughput

Memory Usage

The graphs show that, once the old wallet contains 250,000 transactions, its send rate drops to 3 tx/sec and it adds 600 MB to the node’s memory usage. By contrast, the new wallet sustains over 100 tx/sec and only adds 90 MB. We stopped testing the old wallet at this point, but even with 6-8 million stored transactions, the new wallet continues to send over 100 tx/sec, and it tops out at around 250 MB of RAM used (due to database caching).

These tests were performed under realistic conditions, with multiple addresses and assets (and therefore many unspent transaction outputs) in the node’s wallet. In an idealized scenario (one address, one asset, few UTXOs), the sustained send rate was over 400 tx/s. Either way, as part of this rewrite, we have also properly abstracted all of the wallet’s functionality behind a clean internal interface. This will make it easy to support other database engines in future, for even greater robustness and speed.

To reiterate, all of these numbers refer to the rate at which a node can create, send and store transactions in its local wallet, rather than its throughput in terms of processing transactions created by others. For general network throughput, MultiChain can currently process 200 to 800 tx/sec, depending on the hardware it’s running on. (Be skeptical of any blockchain software promising numbers like 100,000 tx/sec on regular hardware, because the bottleneck is digital signature verification, which takes real time to perform. If nodes are not verifying individual transaction signatures, a blockchain cannot possibly be used across trust boundaries, making it no better than a regular distributed database.)

To finish, I’d like to mention the next major feature coming to MultiChain, which required this wallet rewrite. This feature, called streams, provides a high-level abstraction and API for general purpose data storage on a blockchain. You can think of a stream as a time-series or key-value database, with the added blockchain-related benefits of decentralization, digital signatures, timestamping and immutability. We know of many blockchain use cases that could use this functionality, and we’re already hard at work on building it. Watch this space.

 

Please post any comments on LinkedIn.

 

Technical addendum

Starting in MultiChain alpha 22, you can verify which version of the wallet is currently running by examining the walletdbversion field of the getinfo or getwalletinfo API calls. A value of 1 means the original Bitcoin Core wallet, and 2 means the new MultiChain wallet.

If you run the new version of MultiChain on an existing chain, it will not immediately switch to the new wallet. You can upgrade the wallet by stopping the node and then re-running multichaind with the parameters -walletdbversion=2 –rescan. You can downgrade similarly using –walletdbversion=1 –rescan.

By default, when you start a node on a new chain, it will automatically use the new wallet. You can change this by running multichaind for the first time with the parameter –walletdbversion=1.

With the new wallet, all MultiChain APIs work exactly the same way as before, with the exception of the old transaction querying APIs getreceivedbyaddress, listreceivedbyaddress and listtransactions (use listwallettransactions or listaddresstransactions instead). In addition, the new wallet does not support API calls and parameters relating to Bitcoin Core’s poorly implemented and soon-to-be-deprecated “accounts” mechanism, which was never properly supported by MultiChain. These calls are safely disabled with an error message.

 

Source: https://www.multichain.com/blog/2016/07/announcing-the-new-multichain-wallet/

Blockchain

Crypto Price Analysis & Overview September 25th: Bitcoin, Ethereum, Ripple, Chainlink, and Tezos

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Bitcoin

Bitcoin dropped by a total of 3% over the past seven days of trading as it reached the $10,600 level today. The cryptocurrency briefly pushed above the $11,000 mark last Friday but could not sustain this level as it broke beneath it during the weekend. On Monday, BTC saw a precipitous 7.5% fall as it dropped from $10,910 to reach as low as $10,200.

Bitcoin continued to head lower on Wednesday as it reached $10,140 before the buyers regrouped to initiate a rebound, which happened yesterday. During the rebound, BTC managed to break back above the 100-days EMA and reach as high as $10,760 – where it ran into resistance at the bearish .382 Fib Retracement.

The coin has dropped slightly from there to trade at $10,600 today.

Looking ahead, if the bulls can continue above the $10,760 level, higher resistance lies at $10,900 $11,000, and $11,200. Added resistance is expected at $11,340 (bearish .618 Fib Retracement), $11,500, and $11,600.

On the other side, the first level of support lies at $10,430 (100-days EMA0. This is followed by support at $10,330, $10,140, and $10,000.

btcusd-sep25
BTC/USD. Source: TradingView

Ethereum

Ethereum suffered a steeper 11.3% price decline over the past week as it reached the $346 level today. The coin was trading above $380 last Friday but started to drop lower during the weekend. On Monday, Ethereum fell from $365 to reach as low as $335 (100-days EMA).

The price decline continued on Wednesday, which saw ETH drop as low as $320. Luckily, the bulls regrouped for a rebound on Thursday in which ETH managed to reach the $252 resistance (bearish .236 Fib Retracement). It also produced a bullish engulfing candle, which is a strong bullish signal.

Moving forward, if the buyers can break the $352 level, resistance lies at $364 (2019 high), $382, $390, and $400.

On the other side, support is first expected at $336 (100-days EMA). Beneath this, support lies at $320, $306, and $300.

ethusd-sep25
ETH/USD. Source: TradingView

Ethereum also struggled against Bitcoin this week as it fell from 0.035 BTC to reach as low as 0.0311 BTC yesterday. The coin had found support yesterday at the .618 Fib Retracement, which allowed it to bounce higher to the current 0.0326 BTC level.

Looking ahead, if the bulls push higher, the first level of resistance lies at 0.033 BTC. Above this, resistance is located at 0.0337 BTC (March 2019 Support), 0.0347 BTC, and 0.0352 BTC.

On the other side, the first level of support lies at 0.032 BTC. This is followed by support at 0.0315 BTC (100-days EMA), 0.0311 BTC (.618 Fib Retracement), and 0.030 BTC.

ethbtc-sep25
ETH/BTC. Source: TradingView

Ripple

XRP witnessed a 5.5% price fall this week as the coin dropped from $0.25 to reach as low as $0.22 yesterday. The cryptocurrency managed to rebound from there to get as high as $0.24 today. However, the market is facing resistance at the 100-days EMA and must pass this to continue higher.

If the bulls break $0.24, the first level of resistance lies at $0.251 (bearish .382 Fib Retracement). Following this, resistance lies at $0.261 (bearish .5 Fib Retracement), and $0.271 (bearish .618 Fib Retracement).

On the other side, the first level of support lies at $0.235 (200-days EMA). This is followed by support at $0.23, $0.22, and $0.217.

xrpusd-sep25
XRP/USD. Source: TradingView

XRP is also struggling against BTC as it posted a fresh 2-month low at 2165 SAT (downside 1.414 Fib Extension) yesterday. The coin had slipped from 2300 SAT last Friday and continued lower until it hit the 2165 SAT support.

XRP has since bounced higher to reach the 2250 SAT level today.

If the bulls can break 2250 SAT, resistance is first located at 2300 SAT (bearish .382 Fib Retracement). Above this, resistance lies at 2350 SAT (bearish .5 Fib Retracement), 2400 SAT, and 2460 SAT.

Alternatively, support lies at 2200 SAT, 2165 SAT, and 2111 SAT.

xrpbtc-sep25
XRP/BTC. Source: TradingView

Chainlink

LINK saw a substantial 10% price fall over the past seven days, which saw the coin breaking beneath the $10 level and hitting as low as $7.31. There, it found support at a downside 1.272 Fib Extension level, which allowed it to rebound yesterday to reach the $9.90 resistance level today.

If the bulls can break $10, the first level of resistance lies at $10.40. Above this, resistance is found at $11.37 (bearish .382 Fib Retracement), $12, and $12.63 (bearish .5 Fib Retracement).

On the other side, support first lies at $9.00. Beneath this, support is found at $8.67, $8.00, and $7.31.

linkusd-sep25
LINK/USD. Source: TradingView

Against BTC, LINK dropped as low as 0.00072 BTC during the week. It was trading above a 3-month-old rising trend last Friday, but it went on to collapse beneath this support over the weekend. After reaching 0.00072 BTC, LINK bounced higher to get to the current 0.000935 BTC level today. Notice that it has returned to the previous rising trend line, which is now acting as resistance.

Looking ahead, the first level of resistance lies at 0.00095 BTC. This is followed by resistance at 0.001 BTC, 0.00103 BTC (bearish .382 Fib Retracement), and 0.00112 BTC (bearish .5 Fib Retracement).

On the other side, support is first found at 0.00091 BTC. This is followed by support at 0.0082 BTC, 0.00072 BTC, and 0.0007 BTC.

linkbtc-sep25
LINK/BTC. Source: TradingView

Tezos

XTZ saw the steepest price fall on this list as it dropped by 13% over the past 7 days. The coin fell beneath the $2.32 (.618 Fib Retracement) support on Friday and continued lower to crate a new 5-month price low as it reached $1.91. This support held over the past few days, and Tezos rebounded from here yesterday to reach $2.15 today.

Looking ahead, if the bulls break $2.20, resistance is found at $2.32, $2.53 (bearish .382 Fib Retracement), and $2.72 (bearish .5 Fib Retracement).

On the other side, the first two levels of support lie at $2.00 and $1.91. Beneath this, support is expected at $1.74 (.786 Fib Retracement), $1.68, and $1.56.

xtzusd-sep25
XTZ/USD. Source: TradingView

Tezos is suffering further against BTC as it produced a 7-month price low this week after reaching 18,600 SAT. The coin has since bounced from here to break back above 20,000 SAT today.

Looking ahead, the first level of resistance lies at 21,000 SAT. This is followed by resistance at 22,000 SAT, 21,750 SAT, and 24,300 SAT.

On the other side, beneath 20,000 SAT, support lies at 19,380 SAT, 18,600 SATm ad 17,600 SAT (.886 Fib Retracement). Added support lies at 16,600 SAT and 15,600 SAT.

xtzbtc-sep25
XTZ/BTC. Source: TradingView
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

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Source: https://cryptopotato.com/crypto-price-analysis-overview-september-25th-bitcoin-ethereum-ripple-chainlink-and-tezos/

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Bitcoin Maintains $10K As Crypto Market Lost $16 Billion in 7 Days: The Weekly Crypto Market Update

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Another action-packed week took place in the crypto field. Unfortunately, the market is currently in decline as the entire capitalization lost around $16 billion over the past seven days.

The good news for Bitcoin bulls is that BTC managed to maintain itself above the critical psychological and technical support of $10,000. Things were looking rather promising until Monday when the price shot up to about $11,000.

Unfortunately, it was then when Bitcoin’s price took a sharp turn in the wrong direction and tanked to about $10,400. From there, it was a couple of days of sideways action until Wednesday when it dipped even further, calling questions whether or not $10,000 will hold. In the late hours of Thursday, however, Bitcoin bulls woke up and pushed its price to where it currently rests around $10,650.

Elsewhere, on Sunday, Buzz Feed reported that major banking giants such as JP Morgan Chase, Bank of America, Standard Chartered, HSBC, and more, were knowingly facilitating the transfer of up to $2 trillion related to suspicious and even criminal activity. This further supports the narrative that cash is used for illicit activities way more than Bitcoin. After all, $2 trillion is roughly 10x Bitcoin’s total market capitalization.

In another interesting development, the world will finally have its first official Bitcoin exchange-traded fund, though it may not be quite where people expected. It’s a collaboration between Nasdaq and a regulated Brazilian fund manager and will be launched on the Bermuda Stock Exchange (BSX).

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DeFi markets continue to boom as the total value locked in lending protocols surpassed $10 billion this week.

In any case, it’s interesting to see whether or not the hype will continue or if we will soon witness the burst of what many consider to be a DeFi-fueled bubble.

Market Data

Market Cap: $337B | 24H Vol: 105B | BTC Dominance: 58.3%

BTC: $10,613 (+2.46%) | ETH: $344.46 (+2.61%) | XRP: $0.237(+5.3%)

cryptopost_friday_1

World’s First Bitcoin ETF Approved with Expected Launch in Bermuda by End of Year. Nasdaq has collaborated with a regulated Brazilian fund manager to launch the world’s first Bitcoin exchange-traded fund (ETF). It should go live by the end of the year on the Bermuda Stock Exchange (BSX).

CoinGecko: 23% Participate In Yield Farming, But 40% Can’t Read Smart Contracts. According to a recent report by CoinGecko, 23% of people involved in the cryptocurrency field invest in yield farming. However, 40% of them can’t read smart contracts, leaving them seriously exposed to inherent risks associated with failures in the code.

FEW Brings Out DeFi Risks: Ethereum Proponents Caught Planning to Dump on Investors. Leaked screenshots of a Telegram group chat that includes some of the most popular Ethereum proponents have sparked a tweetstorm in Crypto Twitter. It appeared as if the participants were planning to create a token, airdrop it to themselves, hype it up, and dump it on the community.

Social Capital CEO Chamath Palihapitiya: Bitcoin Is My Best Investment Bet. The popular venture capitalist Chamath Palihapitiya has said that his best investment bet so far has been on Bitcoin. This is despite him having invested in countless successful companies and startups.

Gemini Has Now Opened Doors to Crypto Investors in the UK. The popular US-based Bitcoin trading platform Gemini has officially launched operations for its entire range of services in the United Kingdom. This comes weeks after it received a license from the country’s Financial Conduct Authority (FCA).

Document Leak Suggests Major Banks Facilitated Transfer of $2 Trillion in Dirty Money – 10x Current Bitcoin’s Market Cap. Buzz Feed reported on a major document leak that suggests that major banks have been facilitating the transfer of up to $2 trillion associated with illicit and criminal activities. To put things in perspective, this is roughly 10x Bitcoin’s total market cap.

Charts

This week we have a chart analysis of Bitcoin, Ethereum, Ripple, Chainlink, and Tezos – click here for the full price analysis.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

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Source: https://cryptopotato.com/bitcoin-maintains-10k-as-crypto-market-lost-16-billion-in-7-days-the-weekly-crypto-market-update/

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Bitcoin Price Needs to Break This Key Level Before $11,000 is Possible (BTC Analysis)

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Bitcoin bulls appear to be recharging after successfully breaking back into the main channel (yellow) above $10,360 and surging to $10,790.

An influx of $5 billion into the global crypto market cap over the past 24 hours has really helped prop up BTC prices above $10,700 and is also giving several altcoins a moment in the sun.

However, while this is promising news, we still need to see the global crypto market set a new higher-high above $355 billion (total market cap) to break the current downtrend and confirm the market has flipped bullish.

Right now, the only thing standing in the way of Bitcoin returning to the psychological $11,000 level is the 50-EMA line (blue) on the following daily BTC/USD chart. Currently around $10,780.

Price Levels to Watch in the Short-term

The daily 50 EMA is the main target right now for bullish traders; however, just slightly above that at $10,787, we also have the 4-hour 200 EMA (red), which received a noticeable reaction from bearish traders yesterday during Bitcoin’s surging rally.

These two price points will need considerable buying pressure to break, but if bulls are successful again, it should be an easy ride to $11,000.

Looking above that, we have the $11,200, the $11,360, and the $11,530 as the next set of likely resistances if Bitcoin manages to sustain its current momentum.

If bearish traders manage to defend the daily 50-EMA line, however, then we should look to the $10,580 as the first area of support, followed by the $10,440 and the main channel support line at approximately $10,390.

On the daily RSI indicator, we can see that Bitcoin has still not broken above the long-standing resistance (yellow arrow) with a higher high since August 1, 2020. This will be a crucial factor to observe over the next week as the leading crypto asset attempts to retake $11,000. If the indicator line moves above this resistance it will provide a strong buy signal to traders and could help drive prices up towards a new monthly high.

Total market capital: $347 billion

Bitcoin market capital: $198 billion

Bitcoin dominance: 57.1%

*Data provided by Coingecko.

Bitstamp BTC/USD Daily Chart

bitcoin price chart
BTC/USD chart via Tradingview

Bitstamp BTC/USD 4-Hour Chart

bitcoin price
BTC/USD chart via Tradingview
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/bitcoin-price-needs-to-break-this-key-level-before-11000-is-possible-btc-analysis/

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