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rickgrimes 
LSU Fan
Member since Jan 2011
2757 posts
| Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 2:18 am)
LINK
quote:
A technical glitch in the core Bitcoin software forced developers to call for a temporary halt to Bitcoin transactions, sparking a sharp sell-off. The currency's value briefly fell 23 percent to $37 before regaining much of its value later in the evening.
The core of the Bitcoin network is a shared transaction register known as the blockchain. Approximately every 10 minutes, a new block is created containing a record of all Bitcoin transactions that occurred since the previous block. Nodes in the network, known as miners, race to "discover" this next block by solving a cryptographic puzzle. The winner of this race announces the new block to the other nodes. The other nodes verify that it complies with all the rules of the Bitcoin protocol and then accepts it as the next official entry in the block chain, starting the race anew.
It's essential for all miners to enforce exactly the same rules about what counts as a valid block. If a client announces a block that half the network accepts and the other half rejects, the result could be a fork in the network. Different nodes could disagree about which transactions have occurred, potentially producing chaos.
That's what happened on Monday evening. A block was produced that the latest version of the Bitcoin software, version 0.8, recognized as valid but that nodes still running version 0.7 or earlier rejected.
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TyOconner 
Troy Fan
Georgia
Member since Nov 2009
8491 posts
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 2:21 am to rickgrimes)
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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
63136 posts
 Online
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 7:43 am to rickgrimes)
You obviously don't understand cryptography, especially the sophisticated cryptography used by bitcoins.
It is sharable, fresh-thinking unit enhancer cryptography using extended exuding hexidecimal projection technology which cannot be reversed even using a reverse-engineered heuristic instruction counterweight via a cross-platform optimal open system.*
I hope this helps you understand the wonderfulness that is bitcoins...
* Source
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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
17390 posts
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 7:46 am to LSURussian)
quote:
* Source
That link is full of awesome...
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Lsut81
LSU Fan
Member since Jun 2005
54807 posts
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 8:17 am to rickgrimes)
Bitcoins motherfricker
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boosiebadazz
Member since Feb 2008
36680 posts
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 8:36 am to LSURussian)
live by the free market, die by the free market
sovereign citizens reign supreme!
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WikiTiger
LSU Fan
Member since Sep 2007
38216 posts
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 8:50 am to boosiebadazz)
I wonder how much overreaction will be contained in this thread.
FWIW, I was present for the whole event last night and I watched as the issue was discovered to it being resolved, all in just a few hours. That's a pretty good response time, as opposed to this bank, wouldn't you agree?
This post was edited on 3/12 at 8:51 am
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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
63136 posts
Online
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 8:57 am to WikiTiger)
"I bought this hat online using bitcoins!"
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Waffle House 
Virginia Fan
NYC
Member since Aug 2008
1759 posts
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 8:59 am to WikiTiger)
quote:
That's a pretty good response time, as opposed to this bank, wouldn't you agree?
Sure, but it was an incident isolated to only that bank and their customers. It also didn't devalue the currency of those with holdings.
Question for you Wiki, would it be possible for a group of individuals to manufacture one of these events to trigger a sell off? Are there limits on acquiring bitcoins and how quickly do the transactions occur?
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WikiTiger
LSU Fan
Member since Sep 2007
38216 posts
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 9:05 am to Waffle House)
quote:
would it be possible for a group of individuals to manufacture one of these events to trigger a sell off?
Doubtful. This issue was related to the new version of the bitcoin software processing blocks that were larger than the old versions could handle. Since there are still people using the older version, it caused a fork in the blockchain. In order to intentionally pull something like that off, you'd have to somehow get a very large amount of people to simultaneously use your new version of the software. And in that case, it would only cause a fork and would not effect the official blockchain. The confusion might cause a temporary price drop, but just as last night, it would probably quickly recover.
quote:
Are there limits on acquiring bitcoins and how quickly do the transactions occur?
The bitcoin protocol itself has no limits on acquiring other than the overall limits on the total amount of bitcoins being released. Exchanges, however, do have rules on this, and have been known to shut down trading when necessary.
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TROLA
LSU Fan
BATON ROUGE
Member since Apr 2004
5204 posts
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 9:40 am to rickgrimes)
Here's a major problem... A simple glitch that should have been foreseen caused the whole currency to cease.. That's a major problem whether they want to admit or not.
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TigerDeBaiter
LSU Fan
Member since Dec 2010
2371 posts
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 9:49 am to WikiTiger)
quote:
FWIW, I was present for the whole event last night and I watched as the issue was discovered to it being resolved, all in just a few hours
What does this even mean? You were on the Internet?
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Lsut81
LSU Fan
Member since Jun 2005
54807 posts
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 9:50 am to TigerDeBaiter)
quote:
You were on the Internet?
Well frick, I was there too 
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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
63136 posts
Online
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 9:55 am to TigerDeBaiter)
quote:
What does this even mean? You were on the Internet?
No, it means Wiki was actually inside the Matrix....
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Vols&Shaft83 
Tennessee Fan
Member since Dec 2012
3075 posts
Online
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 9:58 am to LSURussian)
Wiki took the Red Pill 
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el duderino III
LSU Fan
austin
Member since Jul 2011
1405 posts
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 9:59 am to TigerDeBaiter)
quote:
What does this even mean? You were on the Internet?
yes, he was on the internet during the hours that bitcoin was not being accepted for transactions. in case this caused you to have doubts - KEEP CALM, WIKI WAS PRESENT.
and the appropriate analogy wouldn't be a bank closing. the correct analogy would be that for multiple hours, with no warning and without anyone knowing why, US dollars were no longer accepted anywhere as currency. i know, big deal, dollars dont even have cryptography lolz!
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OnTheBrink 
Alabama Fan
TN
Member since Mar 2012
1802 posts
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 10:08 am to el duderino III)
I do not know why, but these threads always deliver several laughs....
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Fat Bastard 
New Orleans Saints Fan
Paradise
Member since Mar 2009
13433 posts
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 10:26 am to LSURussian)
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Fat Bastard
New Orleans Saints Fan
Paradise
Member since Mar 2009
13433 posts
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 10:28 am to Vols&Shaft83)
quote:
Wiki took the Red Pill
instead of the blue pill?
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WikiTiger
LSU Fan
Member since Sep 2007
38216 posts
| re: Major glitch in Bitcoin network sparks sell-off (Posted on 3/12/13 at 10:29 am to TROLA)
quote:
A simple glitch that should have been foreseen caused the whole currency to cease
That's not what happened at all.
quote:
That's a major problem whether they want to admit or not.
Is it? It doesn't seem like the market is treating it that way. It's exchanging at $44.30 right now.
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