Exploring Vitaliks Proposal For Limiting Ethereum Maximum Supply
April Fools Day wasnt purely a day of comedy for the digital currency industry in 2018, as Ethereums co-founder, Vitalik Buterin, used the opportunity to introduce a proposal for implementing an Ethereum maximum supply. While the timing caused the community to debate whether or not Buterins proposal was a joke, he revealed that the joke was the communitys lack of certainty. For all intents and purposes, Buterins proposal reflects an important topic of discussion for Ethereum, the worlds second most popular digital currency. Currently, one of the key factors separating Ethereum from the industrys juggernaut, Bitcoin, is that there is no hard cap on the amount of the currency that can be created. One of Bitcoins most praised use cases is as a store of value. In order to ensure that Bitcoin had value to holders, it was designed to feature a limited supply. Bitcoins are created each time miners discover a new block. Every 2,016 blocks, the rate of block creation is slowed down. As a result, the total volume of bitcoin in circulation is hard capped at under 21 million bitcoins. Additionally, destroyed and lost coins will never be spendable, further lowering the supply. Currently, 3/4ths of all bitcoin have already been mined. However, the supply will not run out until around 2140 due to the block creation rate continually halving. This model takes strong inspiration from gold, and creates a sense of value for those who hold the finite currency. Ethereum, on the other hand, has no such overall supply cap a fact that often separates Ethereum supporters and critics. Buterins proposal explores the possibility of capping Etheruem at exactly 2x the amount of ETH sold in the original ether sale. Ethereums usage as a platform, and the current lack of a hard cap Ethereums lack of a Continue reading >>
Ethereums Supply Has Crossed 100m, Heres What That Means
Ethereums supply has crossed 100M, heres what that means It seems Ethereum's co-founder's predication was wrong Ethereum ETH has hit a new milestone as earlier today the cryptocurrencys total supply crossed the 100 million mark: this means there is more than 100 million Ether in circulation. Unlike Bitcoin which has its supply capped at 21 million, Ethereum has opted not to set an upper limit on its total coin supply. This has raised concerns about inflation in the Ethereum community for years on end. Back in 2016, Ethereum co-founder Vitalik Buterin projected the supply wont cross 100 million in the foreseable future not until the next century at least. Clearly, something with his calculations went amiss. Perhaps doubting his initial prediction, Buterin brought in an Ethereum Improvement Proposal (EIP) in April 2018 to cap the total Ether supply at 120 million. In order to ensure the economic sustainability of the platform under the widest possible variety of circumstances, and in light of the fact that issuing new coins to proof of work miners is no longer an effective way of promoting an egalitarian coin distribution or any other significant policy goal, I propose that we agree on a hard cap for the total quantity of ETH, Vitalik said in the proposal. I recommend setting [a maximum supply of 120 million], or exactly [twice] the amount of ETH sold in the original Ether sale. As of today, the EIP has not yet been accepted, and the networks supply remains uncapped. The total supply of Ether has been seeing a constant rise (approximately 10 percent) per year. Ethereums genesis block (i.e. the first block of its blockchain) was launched in 2015 with 72 million Ether already generated. This means that another 28 million Ether has been mined in nearly 3 years since the pub 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 >>
Why Ethereum Has Value?
BuyUcoin a Cryptocurrency Exchange platform in India. An entrepreneur at heart, currently, he is working on Blockchain technology to make most out of it and Love to build new products. Although there are many cryptocurrencies out there competing with Bitcoin to get the market share, none of them have been able to challenge the latter but one of course named Ethereum, which has become the second most popular crypto in the world. But what is Ethereum and how it is different from Bitcoin? Ethereum is often touted as a world computer. What that fancy language really means is that Ethereum is a platform for the creation of decentralized applications (dapps), using what are known as smart contracts. Smart contracts are bits of code that automatically execute an action after certain requirements have been metsay, sending a slice of an apps profits to investors after a predetermined date has passed. Bitcoin has smart contracts too, but Ethereum makes them really easy to use since theyre baked into the systems design. All of this takes place on a blockchain, which Bitcoin uses too. All ablockchain does is act as a public ledger that lists everything that goes on in the network in real-time. Its the tool that makes the whole thing possible. The blockchain, and thus the Ethereum network, is distributed across thousands of computers (or nodes) around the world. Its also Turing complete, which means that smart contracts on the blockchain can handle most computational functions, allowing them to be pretty sophisticated. For example, say that I want to send my colleague Jordan some money. I would register this contract between myself and Jordan on the blockchain and the Ethereum network would automatically facilitate the exchange of money. Since the blockchain is a public ledger, any Continue reading >>
What Is Ether?
Ether is a necessary element a fuel for operating the distributed application platform Ethereum. It is a form of payment made by the clients of the platform to the machines executing the requested operations. To put it another way, ether is the incentive ensuring that developers write quality applications (wasteful code costs more), and that the network remains healthy (people are compensated for their contributed resources). If you just want to test the technology, you probably don't need real ether. Download the latest Wallet app and switch to the Test Network Check your ether presale balance safely here: The total supply of ether and its rate of issuance was decided by the donations gathered on the 2014 presale. The results were roughly: 60 million ether created to contributors of the presale 12 Million (20% of the above) were created to the development fund, most of it going to early contributors and developers and the remaining to the Ethereum Foundation 5 ethers are created every block (roughly 15 seconds) to the miner of the block 2-3 ethers are sometimes sent to another miner if they were also able to find a solution but his block wasn't included (called uncle/aunt reward) Note that after the Byzantium update is implemented, the mining and uncle reward is reduced to 3 ethers and 0.625-2.625 ethers, respectively. No. According to the terms agreed by all parties on the 2014 presale, issuance of ether is capped at 18 million ether per year (this number equals 25% of the initial supply). This means that while the absolute issuance is fixed, the relative inflation is decreased every year. In theory if this issuance was kept indefinitely then at some point the rate of new tokens created every year would reach the average amount lost yearly (by misuse, accidental key Continue reading >>
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 >>
Bitcoin Vs Ether Vs Litecoin Vs Ripple: Differences Between Cryptocurrencies
By now, you've no doubt heard about the massive bitcoin rally this year . And you may also have read about other cryptocurrencies, such as litecoin and Ethereum , surging too. But there are over 1,300 cryptocurrencies in existence. And while bitcoin dominates the market, several other digital currencies are making waves. CNBC has created a brief guide on how the top five cryptocurrencies by market capitalization, or value in the world, have performed so far this year, and what the differences are between each of them. All market cap and year-to-date rise figures are accurate as of December 14. But because of the frenzy around bitcoin, transaction times have spiked, which could go against the original aims of the cryptocurrency. While Nakamoto referred to bitcoin as electronic cash, many experts have called it "digital gold" and said it could be a long-term store of value. At the moment, some retailers in Japan have begun accepting bitcoin as payment and there are even instances of real estate firms accepting it too . But there is little evidence of widespread use of bitcoin for payments. Ethereum is the name of a blockchain company that has created the digital token ether. But Ethereum and ether are now used interchangeably to refer to the cryptocurrency. Ether is backed by a blockchain, much like bitcoin, but the technology is slightly different and aimed at a specific use case: smart contracts. Take a trade finance deal, for example. This relies on each party in the deal having a paper or digital copy of the contract and needing to update it individually. It's arduous and prone to error. But a smart contract is one that is written in code into a blockchain. Once the terms of the contract are met by each party, a deal will be executed. Many major organizations are exp 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 >>
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 >>
Ethereum Not Having A Supply Cap Is Not Such A Big Deal
Ethereum Not Having A Supply Cap Is Not Such A Big Deal 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 future. Not t 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'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 >>
Is Ethereum Limited Like Bitcoin?
We look at one of the basic differences between Bitcoin and Ethereum You may have heard that there is a limited supply of Bitcoin that can be mined. The mysterious creator, Satoshi Nakamato, has limited the supply that can be mined to 21 million Bitcoins. So far, just under 17 million have been mined, leaving only 4 million in reserve. So, Ethereum Must Run on the Same Principle, Right Well, actually, no. This is mainly due to the fact that Ethereum is a platform that was created with a different goal in mind to Bitcoin. Take, for example, gold. There cant be an unlimited amount of gold, and the same is true of Bitcoin. So, we can think of Bitcoin as a commodity like gold for the purposes of this article. Ethereum is aspiring to be a platform for decentralized services, and a center for trading. Vitalik Buterin, the founder of Ethereum, hasnt put a cap on the amount that can be mined. However, as the block time increases (the difficulty associated with mining Ethereum increases as the block numbers go up), mining will become less worthwhile, as the rewards do not increase with difficulty. Therefore, Buterin is estimating that it will self-limit at around 100 million tokens. In fact, he is banking on this by gradually reducing mining rewards as Ethereum starts to move from proof-of-work (mining to verify transactions) to proof-of-stake (no mining necessary). The main goal of this is to reduce energy costs, but this may also help to limit the amount of Ethereum produced, as there would then be even less incentive for miners to mine. Continue reading >>
How Many Bitcoins Are Yet To Be Mined?
The galloping growth of price of Bitcoin and Ethereum increases the hype around digital currencies. There is a growth of both money supply and investments in both BTC and ETH. More and more often we see questions on how much bitcoins and ether have been mined and can the supply meet everybodys demands. Bitnewstoday aims to answer these questions in the following article. Cryptocurrencies with limited and unlimited supply Digital currencies can be divided into two types: with fixed supply, when a limit of coins emission is pre-installed in their structure, and with uncontrolled supply, when coins, contrariwise, can be mined forever. Among the 25 most capitalized cryptocurrencies, 17 (or 68%) of them have a limited supply. These are: Bitcoin (BTC), Bitcoin Cash (BCH), Ripple (XRP), Litecoin (LTC) etc. Remaining 8 cryptocurrencies of the list have no emission limits for example, Ethereum (ETH), Monero (XMR), NEM (XEM) etc. You can check out the chart below to see the distribution of mined coins which have a limited supply. Table 1 Emission of 25 most capitalized cryptocurrencies Source: Bitnewstodays calculations based on Coinmarketcap data At the press time, more than 16.7 mln of bitcoin already circulate on the digital currency market, which makes 79% of established bitcoin supply limit. In other words, only 4.3 mln of bitcoins remain to be mined. Bitcoin supply speed is written in its code and is strictly limited. Every 4 years, the mining halves. Apart from this, as the stats below show, every new block is harder to mine every new month. Somewhere around 2140 the last 21 millionth bitcoin will emerge, and it is hard to predict what happens next. Some experts believe that at that time the price of Bitcoin will be more than a thousand times larger than the current one d Continue reading >>
Vitalik Buterin Makes (semi-)legitimate Proposal On Capping Ether Supply
Vitalik Buterin Makes (Semi-)Legitimate Proposal on Capping Ether Supply Join our community of 10 000 traders on Hacked.com for just $39 per month. Ethereums most well-known founder and, perhaps, most benevolent influence-wielder is starting April off the way he normally does: cracking jokes .But after the joke itself played out on Github via Buterins Ethereum Improvement Proposal (EIP) #960 the joke being, according to Buterin, to laugh at how many people argued the realness of the proposal, rather than the proposal itself, things got interesting because Buterin volunteered that he had begun to change his feelings on the matter of Ethereum supply. Buterin called this a meta joke, and did appear to illustrate an important point, that in the cryptocurrency community we often fail to address the matter at hand, but a lot of related issues instead. Within the discussion of the community leaders proposal can be found discussion of Ethereum price, Buterin himself, other blockchain designs, and, of course, plenty of discussion about economic theory. For those still wondering whether or not was an April Fool's joke, the answer is: it was an April Fool's meta-joke. *The point* was seeing people argue about whether or not the proposal is "real". Vitalik "Not giving away ETH" Buterin (@VitalikButerin) April 2, 2018 While we can appreciate the good-natured trolling, there certainly is news here: Buterin followed up his meta-joke by clarifying that he does in fact believe there is reason to consider capping the Ethereum supply. In the joking version of his EIP, Buterin even had a specific number in mind: 120 million Ether. I recommend setting MAX_SUPPLY = 120,204,432, or exactly 2x the amount of ETH sold in the original ether sale. We therefore thought our readers might be interes Continue reading >>