Is There A Limit To The Supply Of Ethereum?
Is there a limit to the supply of Ethereum? Quote from Vitalik Buterin, Ethereum Foundation: So here is a thought. Currently, because of the PoW ice age, the block time is scheduled to start increasing in mid-2017, and past around 2019 the increase is going to grow exponentially. The mining reward does NOT increase proportionately. Hence, there is already an exponential slowdown in the growth of the ETH supply built into the protocol; my script shows: Block 3000000, approx ETH supply 87962556, time '2017-01-16 00:38:33.067775' blocktime 14.86 Block 3500000, approx ETH supply 90612556, time '2017-04-11 18:09:34.273529' blocktime 15.27 Block 4000000, approx ETH supply 93262556, time '2017-08-15 18:20:24.642729' blocktime 30.01 Block 4500000, approx ETH supply 95912556, time '2018-11-03 05:55:48.912370' blocktime 136.71 Block 5000000, approx ETH supply 98562556, time '2025-10-02 11:47:30.658317' blocktime 835.81 Block 5500000, approx ETH supply 101212556, time '2128-03-20 09:14:16.483692' blocktime 17183.83 Block 6000000, approx ETH supply 103862556, time '5189-09-26 20:57:59.367004' blocktime 520901.19 Hence, in the foreseeable future, the supply will not go far above 100 million. Ice age is a term used to describe the difficulty increase in the network(also called difficulty bomb). With time the mining difficulty increases exponentially and will bring the network to a halt. The idea behind this is to motivate the developers to move to Proof of Stake and give them a time limit to implement the new protocol before the network stops. Slower network = longer block times = less ETH rewards Continue reading >>
Top 4 Reasons Why Ethereum May Ultimately Fail
Top 4 Reasons Why Ethereum May Ultimately Fail Top 4 Reasons Why Ethereum May Ultimately Fail JP Buntinx July 21, 2017 Featured , Viral Even though weve highlighted some of the criticisms directed toward Ethereum before, theyare not the only issues thenetwork has to address. It is disappointing to see such a prominent ecosystem hindered by technical issues, ideological decisions which can easily backfire, and other factors which may eventually spell disaster for Ethereum. Below are some of the downsides of which Ethereum users and investors alike should be aware. Even though virtually every company or project looking to raise money wishesto conduct an Ethereum-based ICO, these crowdsales can have negative repercussions. Alot of these projects will eventually liquidate the amount of ETH raised and dump it all on the market. Not only will this affect the Ether price negatively, but it also shows Ethereum is merely a facilitator to raise funds, rather than technology in which these companies believe. It is only a matter of time until the influx of cryptocurrency ICOs backfires on the Ethereum ecosystem. There is no guarantee that anyof these projects have legitimate intentions, and any bad PR will automatically taint Ethereums reputation further. While it is true that Ether allows people from all over the world to invest in ICOs, there is never a guarantee for success. Even though many companies have joined the Ethereum Enterprise Alliance , they are not necessarily aware of the issues this network has. We have seen two major exploits discovered and used, both of which resulted in massive amounts of funds being stolen. The first exploit wasthe DAO smart contract bug, andthe second exploit showed how Ethereum has no secure multisignature wallet solution currently. Immature Continue reading >>
230 Million: Ethereum Classic Community Backs Limit On Total Tokens - Coindesk
230 Million: Ethereum Classic Community Backs Limit on Total Tokens The community of companies and startups supporting the ethereum classic blockchain is planning to put a cap on the total amount of tokens that willever be created by the protocol. In a new blog post released today, signatories from the network's development, infrastructure and investment ecosystem threw their support behind a plan to upgrade the network in the coming months. Notable signatories include startup IOHK, which is led by former ethereum CEO Charles Hoskinson, Digital Currency Group, and major mining pools including F2Pool. The plan for the "monetary policy" envisions a limit being implemented, with an eye to start releasing software clients this summer. "The new monetary policy sets a limit for the total [classic ether (ETC)]issuance. The block reward will be reduced by 20% at block number 5,000,000, and another 20% every 5,000,000 blocks thereafter. Uncle block rewards will also be reduced. Due to variations in the reward rate of ETC, we anticipate the total supply to be approximately 210 million ETC, not to exceed 230 million ETC." Activation of the upgrade could come as early as the fall, and should the upgrade be adopted by network supporters, the block reward decline will begin in December. If enacted, the development would mark a significant milestone for the project, which arose from a split in the ethereum communitylast year. Disclosure: CoinDesk is a subsidiary of Digital Currency Group. Continue reading >>
Ethereum Price Can Reach $2,000 If This Happens
Ethereum Price Can Reach $2,000 If This Happens When Ether reaches a price of $2,000, we are looking at a market capitalization of around $188 bln. When Ether reaches a price of $2,000 , we are looking at a market capitalization of around $188 bln. Although this is significantly higher than today, an eight-time increase, it is still relatively small if we compare it to the market capitalization of a company like Facebook, $492 bln. Cointelegraph attempts to analyze what events need to occur in order for Ether to break this mark . Currently, the Ethereum network is limited to around 20 transactions per second. This is twice as much as Bitcoin can handle. However, if we are looking at a future where Ethereum is used as a daily form of payment , this isnt enough. The Raiden Network is aiming to solve this problem. Its developers are building an off-chain solution for Ethereum payments which scales linearly with the number of participants. The network could in the future handle over 1,000,000 transactions per second. Additionally, it will allow decreasing transaction cost by seven orders of magnitude, making true micro-transactions on Ethereum a reality. Ether becomes easier to acquire and spend So far there are around 60 active cryptocurrency exchanges. This number is growing every single month as digital assets become more and more attractive. However, the average American is not comfortable with buy and sell limits and trading charts. Therefore, new alternatives need to arise that allow the crowd to acquire Ether. Companies like Dether are working on platforms that allow interested parties to purchase Ether directly with cash. This is definitely a big step in the right direction. At the time Im writing this article, the market capitalization of all cryptocurrencies comb Continue reading >>
Ethereum Creator Wonders Whether His Currency Should Be Scarcer
Bloomberg the Company & Its Products Bloomberg Anywhere Remote LoginBloomberg Anywhere Login Bloomberg Terminal Demo Request Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Ethereum Creator Wonders Whether His Currency Should Be Scarcer In a rare interview, Vitalik Buterin frets over ether supply Notes voodoo economics of digital tokens with no limits Vitalik Buterin, the inventor of the ethereum blockchain, may have created too much of a good thing. The 23-year-oldhelped sell one of the first digital currencies in 2014 when he introduced ether to the public. Three years later hes witnessed scads of other digital currencies raise more than $3 billion in 2017 via so-called initial coin offerings. The sheer number of coins now being created has made him ponder the previously imponderable: limiting the supply of ether. Photographer: David Paul Morris/Bloomberg Im concerned a lot of these token models arent going to be sustainable,Buterin said in a rare interview last week at the Ethereum Developers Conference in Cancun, Mexico. So whats the problem? Theres a hard limit -- 21 million coins -- on the supply of bitcoin, the first successful cryptocurrency, that helps underpin its value. Buterin isnt mulling a cap like that, but hes intrigued by the idea of imposing fees on applications built atop ethereum. Those fees would destroy -- or burn, in Buterins parlance -- ether tokens over time. If the token is being burned, then you have an eco Continue reading >>
Should Ether Keep Without A Limited Supply Or Not?
Does Vitalik Buterin, Ethereums Blockchain creator, regret about not limiting Ethers supply? Accordig to Bloomberg, he may have created too much of a good thing. Vitalik Buterin has created Ether, in 2014 when he was just twenty years old. Three years later and with the ICO market expanding, he asks himself if he should have limited Ethers supply. Just in 2017, ICOs raised more than $3 billion dollars, but not all of them could succeed . I am concerned a lot of these token models are not going to be sustainable, said Buterin in an interview in the Ethereum Developers Conference in Mexico. Bitcoin has a supply limit of 21 million coins, but Ether does not have the same limit. Vitalik Buterin is not thinking about limiting Ethers supply in the same way as Bitcoin. The idea that this young developer has, is to impose fees on applications built atop Ethereum. If the token is being burned, then you have an economic model that says that the value of the token is the net present value of basically all future burnings, he commented. But otherwise, it is just a currency that goes up and down. It feels kind of like voodoo economics and the price of the token isnt really backed by anything. That is a very spooky thing, he said. The intention, and what Ethereum team is looking for, is to introduce some kind of fees that would allow the token to be destroyed. Though, this is not the only single way to limit its supply. For example, another way could be locking some ether in circulation. This is known as proof-of-stake (PoS). PoS means that miners can only mine a percentage of blocks equal to the percentage of Ether they own. In this case, if one miner owns 1 percent of the Ether in the market, it will be able to mine only 1 percent of the blocks. And Buterin does believe that Proof Continue reading >>
Ethereum Not Having A Supply Cap Is Not Such A Big Deal
Bitcoin Development Should Not Hinge On Contributors' Identities Ethereum Not Having A Supply Cap Is Not Such A Big Deal Although the Ethereum ecosystem is attracting a lot of positive attention, some questions still linger. For example, there is no supply cap on the ETH tokens, which leads to constant inflation. Switching to proof-of-take would reduce that inflation, but there wouldnt be a concrete supply cap per se. This is one question a lot of investors should think about. Unlike Bitcoin , with its 21 million coin cap, Ethereum has no particular currency supply limit. That may seem after unusual, but in the world of cryptocurrency, that is not uncommon. At the same time, this brings up the question how the value of individual ETH tokens should be calculated. After all, with no fixed supply, these tokens may as well be worth next to zero. According to a Reddit post , the number of issued ETH is linked to the value of a single token. In a way, this means the more tokens are created, the less valuable they become. Such a principle exists in traditional finance as well when central banks print more money. In this case, however, that value is decided by the free market. Some people may wonder what would happen if a rogue developer would try and double the supply overnight. While it is unlikely this will happen, it is a genuine question. Without the majority of network miners approving this change, it will not go through. Moreover, new Ethereum clients would need to be developed to accommodate this change. Even though there is no fixed supply cap for Ethereum right now, there are certain limits. The number of coins added per year varies a bit and is currently roughly 20% of the supply cap. That number can go down, assuming there will be a block reward halving in the futu Continue reading >>
Ethereum's Creator Mulls Limiting Supply In Novel Ways
Ethereum's Creator Mulls Limiting Supply In Novel Ways While the ICO craze has got out of control in 2017, the two leading cryptocurrencies Bitcoin and Ethereum have gone from strength to strength. Weve seen frequent gut-wrenching (for bulls) drawdowns, wallet freezings (Ethereum several days ago see here ), exchange closures (China) and high-profile criticism from speakers engaging forked-tongues (Jamie Dimon's famous fraud comments, etc). Nonetheless, like fledglings learning to leave the nest, a broad swathe of opinion senses that there is progress. Like the early days of the internet, investors will suffer losses on those ICOs which were poorly planned and/or poorly executed which might be most of them. As this process unfolds, however, the better cryptocurrencies will be tweaked, refined and sometimes forked to make them better suited to a range of decentralised applications which are, themselves in state of flux. Talking of tweaks, the co-founder of Ethereum, Vitalik Buterin, is mulling one for Ethereum which might happen before the end of 2017. Watching the firehose of ICOs, Buterin has been asking himself whether, with Ethereum (ether), hes creating too much of a good thing. According to Bloomberg . The 23-year-old helped sell one of the first digital currencies in 2014 when he introduced ether to the public. Three years later hes witnessed scads of other digital currencies raise more than $3 billion in 2017 via so-called initial coin offerings. The sheer number of coins now being created has made him ponder the previously imponderable: limiting the supply of ether. Im concerned a lot of these token models arent going to be sustainable, Buterin said in a rare interview last week at the Ethereum Developers Conference in Cancun, Mexico. So whats the problem? Ther Continue reading >>
Gas Limit - How Does It All Work In Coinomi?
GAS LIMIT - How does it all work in Coinomi? Modified on: Wed, 29 Nov, 2017 at 2:39 PM The Gas Limit is calculated automatically in Coinomi. Think of using a car analogy: You need to drive 500km, and you need 30 litres of gas to get there. Ideally, in the most efficient scenario, your car tank's capacity will be 30 liters, and all of the gas will be consumed excactly as you reach your destination. In ETH, those are called gasLimit (tank capacity) and gasUsed (actual gas used by tx). v Manually setting the limit to 200000 for a transaction that really requires for eg. 68000 is like having a 100 litre gas tank but only fill the 30 needed for your trip, in the analogy above. In Ethereum this is even more inefficient because the excess gas would have to be returned to your ETH address which might leave dust remainders in your wallets. This is what happens in Coinomi: upon constructing your transaction, Coinomi asks the Ethereum network about the precise limit your transaction needs, and sets that as the limit automatically, ensuring ideal consumption without need for returns. In short, in Coinomi, always, gasUsed = gasLimit. Therefore, you do not need to worry about gas limits when participating in ICOs or when sending ETH or tokens to contract addresses. The work will be done behind the scenes and the ideal, correct limit will always be set. The transaction will need and spend that excact amount. ETH fees are completely different than BTC ones: The fee you see in our .../Settings/Transction fees page, is the ETH price of one (1) gas. A normal ETH transaction requires 21000 gas. Smart contracts, tokens etc might require more as they contain complex opcodes that require random amounts of gas. The amount of ETH in the transaction does not matter in Ethereum, unlike BTC, and Continue reading >>
Guide To Ethereum: What Is Gas, Gas Limit And Gas Price?
Guide to Ethereum: What is Gas, Gas Limit and Gas Price? Smokescreen no more By Aziz, Founder of Master the Crypto No responses Home Ethereum Guide to Ethereum: What is Gas, Gas Limit and Gas Price? This article breaks down the concept of gas, gas limit and gas price, which is a central feature of the Ethereum (ETH) Blockchain and ecosystem. If youve performed a simple transfer of Ether (ETH) from one place to another or participated in an Initial Coin Offering (ICO) , then chances are youre exposed to the concept of gas in the Ethereum network. Understanding the mechanics of gas and the associated terms gas limit and gas price is a crucial element to executing your ETH transactions. But before delving into the details of gas, its important to have a basic understanding of Ethereum. (Read more: Coins, Tokens & Altcoins: Whats the Difference? ) Ethereum is a giant network consisting of a huge number of computers connected together. This large, interconnected web of computers is called the Ethereum Virtual Network (EVN) essentially a global, supercomputer where all transactions occurring in the Ethereum network are updated and recorded into each computer. Ether (ETH) is the native currency of the Ethereum blockchain and is used as the fuel for the network. ETH is not to be confused with Ethereum Classic ; the latter is a fork of the Ethereum Blockchain. Heres a guide to understanding forks, hard forks and soft forks . A revolutionary functionality of the Ethereum blockchain was the introduction of smart contracts. Smart contracts are any contracts that have been pre-programmed with a set of definitive rules and regulations that are self-executing, without the need of any intermediaries. Therefore, with any given inputs, there will be a known output. As they say: Heres si Continue reading >>
Ethereum Max Coins Limit ?
I heard that ethereum does not have any coins limit, but i have also heard that mining will be end in about year after abandon proof of work? Can somone explain how many coins will exists in ethereum network, and if and when proof of work will be ended ? I was trying to find some informations, but only thing i have found was bitcointalk thread claims that ethereum is scam Continue reading >>
Ethereum: Ether, Ether Gas, Gas Limit, Gas Price & Fees [all You Need To Know To Get Into An Ico]
Ethereum: Ether, Ether Gas, Gas Limit, Gas Price & Fees [All you need to know to get into an ICO] By: Sudhir Khatwani In: Ethereum Last Updated: The other day I was preparing to participate in an ICO that required me to contribute in Ether (ETH). The ICO was on Ethereums blockchain which meant that I needed to send my Ether (ETH) to an Ethereum smart contract address. Soon after that, I figured out thatMyEtherWallet (aka MEW) is one of the best Ethereum wallets that supports smart contracts , so I started preparing my MEW for the ICO. And as I have advised you to in my DApps write-up to read and understand the ICO requirements thoroughly, I did the same and went to the official ICO website to know what was required of me. There I encountered that the ICO required a minimum recommended Gas Limit of 200000 and a Gas Price of 70Gwei which should convert into fees of 0.014 Ether (ETH) or $3.15. At that time, these terms of gas limit and gas price were alien to me. Nevertheless, I did my due diligence and successfully participated in the ICO. It was when I was doing my due diligence and researching these terms that I realized that they were all explained in a very technical way, and there was a lot of confusion around them. Moreover, its very important to understand these terms if you want to participate in an Ethereum-based ICO. Now that the ICO has concluded, I thought of introducing these terms to you in a more non-technical manner so that no one in the CoinSutra community is left behind. But before that, I think a quick recap of Ethereum, Ether, and ICOs will be helpful. Ethereum is a blockchain-based platform on which anyone with knowledge of the Solidity language can write autonomous smart contracts and also create decentralized applications (aka DApps). The official Continue reading >>
No Supply Limit? The Economics Ofethereum
Exploring my interests through research and exposition. Editor of Optimization. Enthusiast of the Future. No Supply Limit? The Economics ofEthereum The Ethereum whitepaper differs quite a bit from the few Ive read so far on other projects, and sticks out due to the minimal mentions of economics compared to the normally detailed descriptions for ICOs. After all, Ethereum was also launched via a token sale; however, it differs in intended purpose. Understanding the economics of supply and demand in a cryptocurrency brings not only the potential for financial reward, but also faith or loss of faith in the project. This article goes in-depth on participation incentives, below are examples of different token economics: Some tokens like Bitcoin are mined through intensive calculations and have a finite supplies. Some speculators are optimistic about holding onto such coins and view them as gold, seeing a finite supply and increasing demand as positive for upwards price movement. Others such as IOTA are pre-mined. Every IOTA in existence has already been released to the market, no more can be created. Still others have only released a percentage of their tokens, with the remaining supply being released over time. See Ripple. The danger here in some coins (this is not directed at Ripple) is a cashing-out by the development team by only releasing tokens for sale as the price increases, fueling speculation. Our subject of discussion, Ethereum, has no supply cap! Ethereum is built with the goal to become the platform for DApps ( source ). Such a platform hosts the ability to run smart contracts, lines of code that execute once certain conditions are met. The whitepaper details the three main applications on top of the ethereum platform: financial applications of contracts such as Continue reading >>
Mining - What Is The Total Supply Of Ether? - Ethereum Stack Exchange
In Bitcoin, the total supply is capped at 21 million BTC. Is the total supply of Ether capped? How much will be mined before the Proof of Stake (POS) transition, and how will POS affect the issuance model? I'm not sure anyone really knows the answer, as it hasn't been decided, AFAIK. Tjaden Hess Jan 25 '16 at 20:42 Thanks. Was afraid of that. Hope that gets decided soon - would vastly prefer a fixed money supply at time of Proof of Stake with mining paid for by transaction fees only. Matthew Light Jan 25 '16 at 21:02 To clarify, homestead and PoS start are not necessarily the same milestone. Makes things a little close, but in my mind that means these are not the same question. Jeff Coleman Jan 26 '16 at 5:39 60 million + 12 million + 18million = ~90million60 million - is the Pre-sale.12 million - is the dev fund, 0.2coins per 1 coin sold in the crowdsale.~18 million - 1 million coins mined per month for 18 months prior to going from POW to POS. Update #1: 91,018,773.78 (April 25, 2017). After a while, 15,626,576 ether won't represent much of the total ether available, making the system dis-inflationary (i.e., inflation perpetually trending towards 0 but never reaching it). is there inflation after all coins are mined? Patoshi Feb 2 '16 at 20:55 @duckx i dont think, because the value will be high and it will keep increasing hopefully niksmac Feb 3 '16 at 2:34 @NikhilM we've seen this story before: if it doesn't take much Ether to actually create a contract then absent other drivers for demand the value will plummet. The rallies are driven purely by the low float, which is great for perception, but one must look at the risk factors for both the economics and their associated investment. Cryptocurrencies make this difficult due to the need to own them as an asset thereby Continue reading >>
Etc To Limit Token Supply, Become Store Of Value This December
ETC to Limit Token Supply, Become Store of Value This December Ethereum Classic has had a theoretically unlimited supply of tokens, with nearly 13 million created each year. However thats about to change this December, as Ethereum Classic implements a new policy to limit the supply of tokens. The goal is to make the asset a better store of value. ETC prices have exploded in the last few weeks in response. Join the Bitsonline Telegram channel to get the latest Bitcoin, cryptocurrency, and tech news updates: Ethereum, and by extension Ethereum Classic, was created with the idea that there should not be a maximum limit on the amount of tokens. This is in contrast to Bitcoin, which has a hard cap of 21 million. The idea behind the unlimited supply is that tokens would be used to pay for services from the network. Ethereums ether was created not as a currency, but as fuel that powers the network. An overly limited supply could make it impossible to pay the network to operate, which could cause it to fail.Too fewtokens, and the price would not be economical for real world use. An unlimited supply means that prices will always drop as more and more tokens are created and put on the market. Earlier this month, Vitalkin Buterin considered implementing various way to burn, or destroy ether, to control its supply. This means that whenever a certain type of transaction occurs on the network, a small amount of Ether would be permanently destroyed. Ethereum Classic, on the other hand, has a different solution to the problem. The solution Ethereum Classic will use is in its upcoming ECIP 1017 monetary policy. The rules stipulate that starting at block 5 million, or on December 12th, the block reward will drop from 5 to 4 ETC. This downward trend will continue until eventually the blo Continue reading >>