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Topic: how many ledger entries does it take to buy a cup of coffee? (Read 496 times)

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It' actually also crazy to think about how many hashes, rounds of SHA256, etc. have to be done until a valid transaction is being issued in order to pay for your coffee. Those are mathematical operations that would take people several weeks to complete, if done by hand! Cheesy Not that it's a bad thing, it isn't, but it's fascinating!!!

This guy actually hashed by hand and calculated how much time and energy it would take:

Doing one round of SHA-256 by hand took me 16 minutes, 45 seconds. At this rate, hashing a full Bitcoin block (128 rounds)[3] would take 1.49 days, for a hash rate of 0.67 hashes per day (although I would probably get faster with practice). In comparison, current Bitcoin mining hardware does several terahashes per second, about a quintillion times faster than my manual hashing. Needless to say, manual Bitcoin mining is not at all practical.[5]

A Reddit reader asked about my energy consumption. There's not much physical exertion, so assuming a resting metabolic rate of 1500kcal/day, manual hashing works out to almost 10 megajoules/hash. A typical energy consumption for mining hardware is 1000 megahashes/joule. So I'm less energy efficient by a factor of 10^16, or 10 quadrillion. The next question is the energy cost. A cheap source of food energy is donuts at $0.23 for 200 kcalories. Electricity here is $0.15/kilowatt-hour, which is cheaper by a factor of 6.7 - closer than I expected. Thus my energy cost per hash is about 67 quadrillion times that of mining hardware. It's clear I'm not going to make my fortune off manual mining, and I haven't even included the cost of all the paper and pencils I'll need.

 Shocked Cheesy
hero member
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A pumpkin mines 27 hours a night
It' actually also crazy to think about how many hashes, rounds of SHA256, etc. have to be done until a valid transaction is being issued in order to pay for your coffee. Those are mathematical operations that would take people several weeks to complete, if done by hand! Cheesy Not that it's a bad thing, it isn't, but it's fascinating!!!
hero member
Activity: 784
Merit: 1001
Has anyone ever analyzed how complex it is to process the purchase of something as simple as a cup of coffee, using a credit card? This one purchase triggers a complex flow of money between customer, credit card company, merchant, and the merchant's POS (like square or whoever). Not sure whether a bank gets involved in an individual transaction like this or not. I'm guessing that the number of different ledger entries that correspond to this one number must be pretty large.

One of the basic principles of database normalization is to eliminate redundant storage of data -- that is, storing the same data in more than one table. Our current financial system, when looked at as a single giant database, suffers greatly due to lack of normalization. Then bitcoin comes along and BAM! suddenly, the Financial Database of the World is normalized.

I bet it will be a couple more years before accountants around the world start to think of and appreciate bitcoin from this point of view. When they do, it will make them want to invest -------> BULLISH Wink


See, e.g.:
http://en.wikipedia.org/wiki/Database_normalization
http://databases.about.com/od/specificproducts/a/normalization.htm
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