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imageWhen you make a bitcoin transaction, the coins you spend from your wallet to another wallet have a traceable history back to the point where those coins were mined from the network. bitcoin has fungibility problems because technically transactions are traceable. Therefore in the future some coins could be seen as more valuable because they are clear, meaning they have not been dirtied by touching wallets of unfavorable services. Is each bitcoin is the same as each other bitcoin? If certain services are deemed unfavorable, the history of coins moving through wallets which are associated with unfavorable services could be marked. At the current state of the network, bitcoin has fungibility issues, this is a problem which needs to be solved in order to make any bitcoin as valuable as any other bitcoin.

The testnet is an alternative Bitcoin block chain to be used for testing. This allows application developers or bitcoin testers to experiment, without having to use real bitcoins or worrying about breaking the main bitcoin chain. Testnet coins are separate and distinct from actual bitcoins, and are never supposed to have any value.

There needs to be a finite supply so that the currency maintains its value. This is a rule which is baked into the bitcoin network, and has a very high degree of security. The vast majority of the people securing the bitcoin network would have to agree on a change to the network rules for them to change, this is highly unlikely to happen given they would agree to change the fundamentals of the network. There will only ever be 21 million bitcoins, no person can create more bitcoins.

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During this time no less than 118 articles have been written about the ‘death of bitcoin’, there is even a site dedicated to recording these bitcoin obituaries . Is it believable that bitcoin has been going strong for 7 years?

As of January 2018, the size of the data on disk was 14 GB containing data for about 6 years worth of testnet activity. Downloading this data required about 12 GB of network activity peaking at 2 MB/s rate of transfer. Testnet receives less transactions than the main block chain and is typically much smaller in size.

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In addition, if no block has been found in 20 minutes, the difficulty automatically resets back to the minimum for a single block, after which it returns to its previous value. This means that the mainnet-equivalent of any testnet difficulty is half the testnet difficulty. A new genesis block The IsStandard() check is disabled so that non-standard transactions can be experimented with. ( 0x6F rather than 0x00 ) The protocol message header bytes are 0x0B110907 (instead of 0xF9BEB4D9 ) Minimum difficulty of 1.0 on testnet is equal to difficulty of 0.5 on mainnet. Default Bitcoin network protocol listen port is 18333 (instead of 8333) Default RPC connection port is 18332 (instead of 8332) Bootstrapping uses different DNS seeds. A different value of ADDRESSVERSION field ensures no testnet Bitcoin addresses will work on the production network.

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