new yorkbased bitcoin nydig 200m theblock

Reportedly, some of the project’s biggest clients are even featured on the ‘Fortune 500‘ list.JUST IN: Fortune 500 payments company Fiserv (NASDAQ:FISV) partners with @NYDIG_BTC to allow clients to manage #Bitcoin transactions directly within their bank accounts pic.twitter.com/ZHSndEbX3d

— Blockworks (@Blockworks_) June 23, 2021

Bitcoin’s (BTC) Price Rises Above the Crucial $20,000 Line

The bumpy road in the crypto race this week has left many of the top 100 currencies in the red. The leading crypto asset, Bitcoin (BTC), is no exception, recording a a 3.7% deficit over the course of the last 7 days.


A 51% attack on the Bitcoin network is exceedingly improbable given the amount of processing power it would require. Still, it has happened on other blockchains4 that have far fewer miners.

With these facts in mind, you can think of a blockchain’s security as a function of the amount and distribution of its processing power.

Contrary to popular belief, mining doesn’t require solving a complicated mathematical problem. In reality, miners are just playing a guessing game with incredibly long odds.


The first miner to generate a lower number than the current target set by the network wins. The catch is that, unlike a lottery, miners don’t get to choose their numbers.

Hashes

The numbers they play in the Bitcoin lottery come from what is known as a hash function.
A hash function is an algorithm that takes a data input of any size and turns it into a numerical value.


For example, Bitcoin uses the SHA-256 hash function, which the U.S. National Security Agency created in 2001. For data of any length, SHA-256 returns a value in hexadecimal format (a 64 character long string of numbers and letters that is just another way to write out what you’d think of as a typical number).
It’s worth noting that the hexadecimal number doesn’t store the data used to create it. So knowing the number doesn’t mean the SHA-256 algorithm knows what went into making it.
You can quickly transform data with SHA-256, but the only way to discover the input is to guess.

The magic of SHA-256 is that the same input will always result in the same output, and each different input yields a unique output. So running “Satoshi” through SHA-256 will always produce the same result.

Conversely, if the average block creation time were above ten minutes, the target would increase, creating more winning hash values, and making it easier for a miner to “win” the game.

For a sense of how the difficulty adjustment works, consider the example of rolling a pair of dice. If the target is 12, any roll other than two sixes would be a winner.

That works out to a probability of success of 97.2%. But if the target drops to 3, only one combination works, and the success rate plummets to less than 3%.

The higher the target, the easier mining becomes.

In this way, the network constantly adapts to the number of miners on the system and advancements in processing power. No matter how fast the network grows, miners can’t add blocks to the chain much quicker or slower than every ten minutes.

Founded in 2019, the British-basedBottlepay is a maker of global, real-time payment applications powered by the Lightning Network. Users can make micropayments of as little as a dollar in Bitcoin or other currencies, such as euros and pounds, instantly without transaction fees. Bottlepay app is available throughout Europe, and the U.K. and users send money as messages via some of the world’s largest social networks like Twitter, Reddit, and Discord.

Therefore, the acquisition will enable NYDIG to integrate Bottlepay’s Lightning Network infrastructure into its existing full-stack Bitcoin platform to facilitate more efficient and faster payments.

Bottlepay founder Pete Cheyne talked about the development and highlighted why NYDIG acquired Bottlepay.

“When we set out to build Bottlepay, we wanted to unlock the financial infrastructure of the future.

New York Digital Investment Group (NYDIG), a Bitcoin technology, and investment solution provider have raised $200 million from key strategic partners that involved its parent company StoneRidge Capitals, Morgan Stanley, New York Life, MassMutual, and a few others.

[email protected]_BTC raises a round of $200m from Morgan Stanley, New York Life, MassMutual, Soros Fund Management, FS Investments, Bessemer Partners, and Fintech Collective. https://t.co/kzRnpiHfUZ

— Saifedean.com (@saifedean) March 8, 2021

Robert Gutmann, co-founder and CEO of NYDIG, said,

“The firms participating in this round are more than investors – they are partners, each well known to us for years.

Other network participants would reject an invalid block, thereby wasting the miner’s own time and money in the process.

Miners’ Role

When a person sends bitcoin from one address to another, computers running the Bitcoin software (known as nodes) that maintain copies of the ledger (known as the blockchain) jump into action. The nodes check that the data is formatted correctly, is less than the block limit of 4 million weight units, and conforms to a host of other technical parameters.

If the transaction passes this initial test, it’s added to what is known as the mempool.

The mempool is simply a repository of valid transactions not yet included on the Bitcoin ledger.

Here’s where miners come in. Nodes don’t add groups of transactions, known as blocks, to the blockchain.

Miners do.

For more information: https://t.co/26kITKNxXL pic.twitter.com/bCvoKxAkBT

— NYDIG (@NYDIG_BTC) July 14, 2022

Making Bitcoin (BTC) Accessible to Everyone

The main aim of the project is to bring Bitcoin (BTC) to those interested in the future of money. To achieve this, NYDIG conducted research which showed that one in three professionals were likely to choose a company that offered partial Bitcoin (BTC) salary options, if all other conditions were identical.

The Bitcoin Savings Plan (BSP) provides employees with a range of advantages, as they won’t have to pay transaction fees or any crypto-related taxes.

In the case of bitcoin mining, that means creating as many hashes as you can, as quickly as you can.

Theoretically, a miner could hit on their first try. Still, on average, it takes quadrillions of hashes to find a sufficient one.

These minuscule odds are intentional. The protocol’s design tries to have blocks mined approximately every ten minutes. There are two reasons for this: to allow nodes enough time to acknowledge changes to the blockchain and to keep new bitcoin issuance on its predetermined supply schedule.

Since the discovery rate varies with the network’s hashrate, the target value is modified every 2,016 blocks, or roughly every two weeks.

This modification is what is known as the difficulty adjustment. For example, the protocol will lower the target value automatically if miners produce blocks quicker than the desired ten-minute pace.

NYDIG will be working with these firms on Bitcoin-related strategic initiatives spanning investment management, insurance, banking, clean energy, and philanthropy.

These partnerships leave no doubt that institutional adoption of Bitcoin has arrived and, further, that NYDIG is the partner of choice for serious financial services firms with the highest fiduciary and diligence standards. “

NYDIG is known for offering institutional clients focused Bitcoin products and solutions, where it has played a key role in helping traditional investors to get exposure to Bitcoin. As of now, life, annuity, and property & casualty insurers now own, in aggregate, more than $1 billion of direct and indirect bitcoin exposure facilitated exclusively by NYDIG, and held on NYDIG’s secure, audited, and insured institutional custody platform.

CEO of NYDIG, also talked about the regulatory credibility that the Bottlepay service built through its business service delivery.

“The Bottlepay team has built world-class infrastructure for Lightning and bitcoin payments, and they have done so with the same level of regulatory and compliance rigour that our customers expect from NYDIG today. NYDIG is on a mission to bring bitcoin to all, and this acquisition brings us one step closer to fulfilling that goal,” Gutmann said.

In February, NYDIG participated in Bottlepay’s $15.4 million seed funding round, a raise led by British billionaire investor Alan Howard and enabled the firm to get a valuation of $50 million in excess.

NYDIGExpanding Crypto Services

The Bottlepay’s acquisition comes amidst NYDIG continued accelerating its business expansion and franchises.

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