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Ethereum Block Reward Reduction

Ethereum 'difficulty Bomb' May Not Happen For Another Year Or Two - Bitsonline

Ethereum 'difficulty Bomb' May Not Happen For Another Year Or Two - Bitsonline

Ethereum Difficulty Bomb May Not Happen for Another Year or Two There will be another delay for Ethereum minings difficulty bomb and switch to a proof-of-stake (POS) network, developers say. The decision could affect miners economic decisions in the near future, such as how much to invest in equipment and how much hashing power to devote to ETH. Also read: Shanghai Authorities Halt Blockchain Event, but No Fears of Wider Crackdown Increased Difficulty Means Leaner Times for ETH Miners There will likely be a squeeze on Ethereum blocks and block rewards from now until a new update arrives in late September. Reports from an Ethereum developers conference call last week said the long-proposed POS implementation, called Casper, will still not be ready soon. Originally planned for late 2017, the roadmap could push Casper back to the end of 2018 or later. Moving to POS has long been part of Ethereums roadmap, though the exact timing is unknown. It would fundamentally change the network, removing all ETH mining activity as it currently exists. Ethereum currently mines using proof-of-work (POW) like Bitcoin, where powerful machines race to solve a complex math problem and receive block rewards. Ethereum blocks are mined roughly every 12 seconds (depending on difficulty) and the block reward is 5 ETH. The rapid rise in ETH value from around $8 USD at the start of 2017 to around $400 in June has seen a rush to mine the token . It has also created a worldwide shortage of GPU cards. Under a POS model, Ethereum would require no GPUs at all. The difficulty bomb is code inserted into Ethereum that increases POW mining difficulty exponentially in preparation for POS introduction. The period where it gets too difficult to mine at all is called the Ice Age and its already beginning. The Continue reading >>

Ethereum Community Votes On Mining Reward Cut

Ethereum Community Votes On Mining Reward Cut

The Ethereum blockchain currently uses a Proof-of-Work consensus mechanism to verify transactions and to produce new ether coins. That means that ether miners require large amounts of computational power to process and verify transactions to receive new coins. Running a blockchain using a Proof-of-Work consensus mechanism, however, creates the problem of scalability as can currently be witnessed by the Bitcoin block size debate. Circumventing scalability issues and the potential centralization of mining operations, the Ethereum development community has decided to switch the Ethereum blockchain to a Proof-of-Stake (PoS) consensus mechanism in the future. By switching to a PoS protocol, substantially less computational power is required, and miners will be rewarded in relation to the amount of ether they hold. Ethereums PoS protocol, called Casper , is still in development. To prevent a hard fork that splits the Ethereum blockchain in two (for the second time), developers have implemented a difficulty time bomb also known as an ice age. The Ethereum ice age is a mining difficulty adjustment scheme that was created to incentivize miners to switch to the new PoS blockchain. Once the fork is executed, the mining difficulty rises exponentially to a point where it would be impossible for miners to keep up with the difficulty increase that would hike block time and make the blockchain effectively freeze. Hence, the term ice age. Ethereum Community Votes on (EIB) #186 Proposal Currently, the Ethereum community is voting on a proposal brought forth by developer Matthew Light who recommends reducing mining rewards to reduce the current level of ether issuance, which would most likely boost ethers price and lead to increasing investments in the platform. A reduction in the mining Continue reading >>

It Is No Longer Worth It To Build An Ethereum Mining Rig

It Is No Longer Worth It To Build An Ethereum Mining Rig

It Is No Longer Worth It To Build An Ethereum Mining Rig Building an Ethereum mining rig hasnt been worth it for months, and soon they will be completely obsolete. Goodnight, sweet prince. Image: Daniel Oberhaus/Motherboard Back in May I wrote a guide explaining how to build an Ethereum mining rig , a special type of computer that forms the backbone of the Ethereum network and earns ether, the digital currency native to the network, for its owner. Shortly thereafter, Motherboard also made a video documenting this process . Since then, Ive received countless emails from readers inquiring about my mining rig. Ive received three such emails this week. The most common question voiced by these readers is whether or not it is still worth it to build a mining rig. The answer to this question is no. Building an Ethereum mining rig hasnt been worth it for months and a few months from now, mining ether will be completely obsolete. Read More: An Idiot's Guide to Building an Ethereum Mining Rig Arguably, building an Ethereum mining rig wasnt even worth it when I built my machine in May, and many readers let me know this when the article and video first came out. This is somewhat true, but there is a necessary caveat here. Mining ether also wasnt worth it for about the first year and a half of the cryptocurrencys existence. The price of ether hovered around $10 from 2015 until early 2017, when it saw a spike to $25. This was important because it meant the value of the ether being mined was higher than the cost of the electricity that was needed to mine it. In other words, until that point small scale mines were operating at a loss in the belief that the tokens they were mining would someday be worth a lot more money. In hindsight, these early miners were rightthe price of ether has Continue reading >>

What The Ethereum Metropolis Update Means For The Eth Holder

What The Ethereum Metropolis Update Means For The Eth Holder

What the Ethereum Metropolis Update Means For the ETH Holder On the first day of the month of August, the Bitcoin blockchain got split and gave rise to a completely new currency bitcoin cash. The miners backing the bitcoin cash blockchain were successful in officially branching off and ultimately added blocks to a new and separate blockchain. The backers of bitcoin cash believe that an economy can be built around the new currency and its blockchain. In the light of this, there is an expected update of the Ethereum blockchain. Ethereum is currently the second most popular cryptocurrency after bitcoin. This update of the Ethereum blockchain is called the Metropolis and it will be the third of four planned stages of the blockchains development. In fact this Metropolis update of Ethereum is expected to be in two parts; two hard forks Byzantium and Constantinople. The fork is projected to occur between the 22nd of September and the 27th of October. To the regular ETH holder, a better experience with the blockchain will be a welcome development and this is exactly what the Ethereum update seeks to do. It is expected that with this update, the Ethereum blockchain will be more secure and also will be more robustly equipped against any potential hack attempt by quantum computers. Ethereums anonymity is expected to be enhanced through the integration of Zcashs cryptographic engine (zk-SNARKS). This will enable direct order and trade executions between the Ethereum and Zcash blockchains. Ethereum mining will be moved from proof-of-work to proof-of-stake which will help reduce the amount of electricity consumed in mining the cryptocurrency. The decision about mining difficulty was however been delayed but rewards to miners have been reduced. Additionally, it is expected that there Continue reading >>

Ethereum Price Analysis - Buterin Reinvents The Ico

Ethereum Price Analysis - Buterin Reinvents The Ico

Ethereum Price Analysis - Buterin reinvents the ICO Josh Olszewicz , 18 Jan 2018 - Ethereum , Opinion , Price Analysis Having gained over 11,000% last year and making a new all time high, Ethereum ( ETH ) dropped sharply this week. The market cap currently stands at US$97.1 billion, with US$7.1 billion traded over the past 24 hours. The number of transactions per day on the networks continues to rise, with Initial Coin Offerings (ICOs) and Decentralized Applications (dapps) continuing to bloom. Over US$1.35 billion was raised by ICOs last year, accounting for ~83% of all ICO funding ever raised. While ETH continues to hold a relatively low Network Value to Transaction ratio, suggesting the coin is undervalued, it seems doubtful the current pace can be sustained. In an effort to create more responsible ICOs, Ethereum founder Vitalik Buterin discussed a new ICO fundraising model which borrows properties from the DAO and is dubbed a Decentralized Autonomous Initial Coin Offering (DAICO). This new model allows users to determine how much the team receives over time, by voting on the tap. The team is therefore rewarded for their performance, and not immediately given access to millions of dollars before a project is worked on or completed. The Ethereum network Hash rate and difficulty continue to rise. The most recent hard fork decreased the block reward to 3 ETH from 5 ETH, and the difficulty was lowered accordingly. Block times are up slightly, at 15 seconds. With the lowered block reward and difficulty rising, mining profitability will begin to decrease substantially, should the price remain stagnant or decrease. Rising prices generally mean rising mining profitability, but also attracts more hashing power to the network. These protocol level changes are an attempt to re Continue reading >>

What Are Mining Rewards In Ethereum?

What Are Mining Rewards In Ethereum?

Mining Ether will start with the release of the Frontier platform. The Olympics test beforehand had no value attributed to the Ether which was mined and all balances at the Ether launch were set back to the close of the Fundraising so even if you had transferred our Ether on the testnet after contributing to your fundraise you will keep the Ether on the launch of the Frontier platform. The proof of work in Ethereum is run through Ethash . The successful PoW miner will receive a static block reward that is equal to 5 Ether. The successful miner will also receive all the gas in fees that it generates from the transactions in the block that it verifies. As time goes on and the amount of Ether created grows it is expected that gas rewards will take the lions share of mining rewards. The miner will also receive an award of 1/32 per Uncle block included. Uncles are stale blocks with parents that are a maximum of six blocks back from the present block. Valid Uncle blocks are rewarded to halt network lag (time to propagate a valid block to the whole network). Uncles included in a block receive 7/8 of the static block reward or 4.375 Ether- with a maximum of 2 Uncles allowed per block. After you have mined some ether you will need somewhere to store it and you can choose the best place here with our ethereum wallet comparison page. Continue reading >>

The Byzantium Countdown: What's Left Before Ethereum's Next Fork? - Coindesk

The Byzantium Countdown: What's Left Before Ethereum's Next Fork? - Coindesk

The Byzantium Countdown: What's Left Before Ethereum's Next Fork? The next major update to ethereum, the world's second largest blockchain by total value, is set to go live in less than a week. Part of a larger, multi-component upgrade called Metropolis , the so-called"Byzantium" code will be enforced at block 4,370,000 or in about four days according to current metrics as a hard fork . A common (yet controversial ) strategy for upgrading blockchains, this means the changes are required to be accepted broadly by all stakeholders on the ethereum blockchain. In this light, however, it's notable that the use of this mechanism in the past has had mixed results for ethereum. To date, the platform has conducted four hard forks , with only one resulting in the creation of an alternative blockchain, ethereum classic . Given the changes in Byzantium have been outlined in the ethereum roadmap as far back as 2015, it's unlikely it will prove problematic.With two major upgrades from Metropolis postponed, Byzantium is perhaps best seen as a conservative upgrade that will introduce nine key ethereum improvement protocols (EIPs) to the platform. In total, the changes are designed to make the platform lighter and faster to run, improving transaction speed, smart contract security and eventually perhaps, privacy . However, that said, there's still work to be done on the upgrade, with various stakeholders now entering the final stages of their preparations. As the shift toward Byzantium is dependant on the network nodes updating, the main focus in the days ahead will be ensuring the clients that offer software to nodes are ready for the upgrade. This means that startups responsible for overseeing clients need to ensure their software actuallycontains the EIPs that enforce the Byzantium Continue reading >>

Mining Ether In The Ethereum Ice Age

Mining Ether In The Ethereum Ice Age

Ether (ETH) , by far the 2nd most popular cryptocurrency after Bitcoin (by market capitalization ), designed to help managing the decentralized applications (dAPPs) on the Ethereum platform, is one of the biggest competitors of Bitcoin when it comes to mining. Mining ether is more lucrative than mining Bitcoin since it uses GPUs that are multi-purpose in comparison to ASICs that cannot be used for anything else than for mining. Upon inception, the Ethereum network has set the proof-of-work (POW) algorithm to secure the network and mine the new tokens, in a way similar to Bitcoins. Later on it was decided that the proof-of-stake (POS) algorithm will be used instead to amplify the networks security. For this purpose, the POS protocol named Casper is currently being developed by the Ethereum team. The switch will take place before November 1 this year arousing lots of discussions within the community. The discussions are mainly concerned with the so-called Ice Age, the hard forks and the EIP #186 issue that we will explain below. The Ethereum Ice Age is the name given to the process of adjusting the network difficulty during the ether mining and the transaction verification. Without adjusting the difficulty, the network would freeze due to the constantly increasing difficulty and the block time. To avoid the Ice Age back in 2015, the first hard fork was created. A hard fork (similar like the Bitcoin hard fore we discussed some months ago) occurs when the community decides to upgrade the blockchain by changing its protocol , or the rules governing the functioning of the network and the consensus mechanism. When the blockchain has been upgraded, the previously valid transactions become invalid and the new version of the blockchain ( fork ) is being created. The hard fork of Continue reading >>

Ethereum Up On Decreased Block Reward | Cryptocurrency Binary Options

Ethereum Up On Decreased Block Reward | Cryptocurrency Binary Options

Ethereum Classic (ETC), which is the original Ethereum chain , gained about 50% last week to hit a high of $34 . While a majority of investors never saw the spike coming, those who entered at the right time are sitting on huge profits. There was also a section of crypto currency investors who complained the spike as a pump-and-dump game. However, the facts presented below indicate there is a big development going on behind the scene and the uptrend we saw last week may be the beginning of a big rally in the near future . Theoretically, there is an unlimited supply of Ethereum Classic tokens. As many as 13 million tokens are created each year. That was one of the reasons for the price to remain depressed. However, at the developer conference in Hong Kong, it was announced that a policy to limit the number of tokens will be implemented. The policy aims to make Ethereum Classic token a better store of value. That triggered a rally in the price of Ethereum Classic. The new policy, referred as ECIP1017, is a protocol upgrade that would permanently alter Ethereum Classics supply. The protocol upgrade was completed last month through a hard fork. The ETC block reward is expected to decrease over time and cease to exist when the total coins in circulation reaches approximately 210 million to 230 million. The first reduction in the reward to 4 ETC, from the current level of 5 ETC per block, will occur at block 5,000,000 or on December 12. To sum it up, following the hard fork, ETC has become a deflationary digital currency that will rise in value over time. Almost 90% of the nodes mining ETC support the shift to ECIP1017. Secondly, as in the case of other crypto currencies, which has seen a sharp rise in the price, volumes traded in the South Korean exchange Bithumb is again th Continue reading >>

Consensus - What Is An Uncle/ommer Block? - Ethereum Stack Exchange

Consensus - What Is An Uncle/ommer Block? - Ethereum Stack Exchange

The Ethereum blockchain is described as containing "ommer" blocks, usually called "uncle" blocks by the general public. What is an ommer/uncle block, and why are they needed? The term "ommer" is a gender-neutral alternative to aunt / uncle. See nonbinary.org/wiki/Gender_neutral_language#Aunt.2FUncle Pi Delport Apr 14 '16 at 14:00 Uncle: a child of a parent of a parent of a block that is not the parent, or more generally a child of an ancestor that is not an ancestor. If A is an uncle of B, B is a nephew of A. To help reward miners for when duplicate block solutions are found because of the shorter block times of Ethereum (compared to other cryptocurrency). An uncle is a smaller reward than a full block. (And if they are submitted later than the next block, the reward rapidly diminishes, ending at zero after seven blocks later.) Uncles are orphaned blocks that contribute to the security of the main chain, but are not considered the canonical "truth" for that particular chain height. Due to advances in blockchain research, it was shown that significantly lower block times were possible and perhaps beneficial given the current connectivity of the internet. One of the potential risks of a low block time is a higher rate of orphaned blocks (competing mined blocks that do not make it into the main chain). To counter this, a GHOST protocol is used which pays for these valid blocks, adding to the security of the main chain. Instead of the main chain being "longest", it is instead "heaviest". Continue reading >>

Vertcoin Reward Halving Explained

Vertcoin Reward Halving Explained

Vertcoin Dev Team | I talk about Crypto and stuff On December 12, 2017 Vertcoin will undergo its first ever block reward subsidy halving. The halving will occur on block 840,000 and reduce mining rewards by 50% from 50 VTC per block to 25 VTC per block. This halving occurs roughly every 4 years and will continue to half until the supply is fully emitted. But what does this all really mean? Will mining be impacted? What about the value of the coin? Should we expect a spike in price? All good questions and all will be answered. Lets get into it. Before I dive into the specifics of halving, lets address a simple yet commonly misunderstood concept: Where do new Vertcoins come from? Within every block that is mined and added to the blockchain, there is a transaction that contains a 50 VTC mining reward. This reward is sent to the miner (or miners in a pool) that solve this block. When you mine VTC youre receiving brand new freshly created Vertcoins. This translates to roughly 28,800 new VTC created and added to the total supply daily. Vertcoin has a max supply of 84,000,000, four times the max supply of Bitcoin. Every 4 years the subsidy will half until the last Vertcoin is emitted. Like gold there is a finite supply of Vertcoin making it a deflationary asset. This means with time, every Vertcoin increases in rarity, become harder to obtain and ultimately increases in value. So the mining reward is being cut in half, as a miner, does this mean Ill receive less coins from mining? In short, yes. At halving, assuming the number of miners and hash rate remains somewhat consistent, everyone should expect less VTC paid out compared to the blocks prior. This will invariably cause a drop in network hash due to miners shutting down their rigs as they will find mining not be as profi Continue reading >>

Vitalik Buterin Proposes Reward Reduction Steemcreated With Sketch.

Vitalik Buterin Proposes Reward Reduction Steemcreated With Sketch.

Vitalik Buterin proposes reward reduction in cryptocurrency 2 years ago (edited) Recently Vitalik Buterin, creator of Ethereum, proposed reduction of ethereum block rewards from 5 ETH, which is currently to 3 ETH. This is going to impact reduction of uncle and nephew rewards. Block rewards are rewards that are offered to miners every block. Because rewards are creation of new ethereum, that also means reduction of inflation. Reduction of rewards is going to mean reduction of inflation, this is also will be positive for the price. It looks like reduction of block rewards are going to come with introduction of new ethereum version called Metropolis. The code is "block.number >= metropolis_fork_blknum". Metropolis is expected to come out in August or September. Ethereum development team is working round the clock to bring Metropolis. Second proposal was delaying of ice age by 42 million seconds (around 1.4 years), probably to leave enough time until Casper comes out. Delay of time age is going to be achieved by increasing of mining difficulty. If everything goes after proposed, even with ice age delay, by the end of 2018 block time will be around 30 second. That will mean that every 30 seconds new block will be created (currently block time is 15 seconds) so inflation slowly will be reduced to another 50%. This new development are positive on Ethereum price, thats why I am bullish on Ethereum on the long term. If evertyghing goes as planned, this creates the possibility that ethereum market cap even exceed bitcoin market cap. Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. Downvoting a post can decrease pending rewards Continue reading >>

Ethereum May Reduce Mining Reward And Inflation By 40%

Ethereum May Reduce Mining Reward And Inflation By 40%

Ethereum May Reduce Mining Reward and Inflation by 40% Ethereum developers are considering splitting the next big upgrade, Metropolis, into two hardforks, with the first hardfork expected sometime in September. That hardfork may reduce mining reward, and thus inflation, by around 40%, from 5 eth per block to 3 eth per block, while at the same time delaying what is called a difficulty bomb as Casper is not yet quite ready. The difficulty bomb is an automatic increase of ethereums mining difficult which has the effect of increasing block times withHudson Jameson, an ethereum developer, estimating they would rise to 45 second per block by November from what used to be around 15 seconds. That difficulty/time bomb was place in there to give miners no choice during the Proof of Stake upgrade known as Casper, but that has apparently been delayed. As such, the developers are proposing that the difficult bomb is delayed too, but to keep mining reward somewhat in line with what it would have been had the difficulty bomb proceeded, they are proposing to reduce block rewards from 5 to 3. The proposal appears popular, not least because if demand remains the same then a reduced supply may lead to a price increase, but some are concerned about the interference with fundamental parameters. Moreover, miners will need to upgrade and if they fail to do so it may lead to another chain-split. But if the proposal is indeed popular, then most eth users will probably value the reduced block reward chain higher. In any event, as a price rise to compensate for the reduced supply should be expected, it may be the case that miners are not actually affected by the change. Which raises the question of why do it at all, with the main reason appearing to be concerns over an increased miners power due Continue reading >>

Ethereum Community Votes To Decide Reduction Of Mining Reward

Ethereum Community Votes To Decide Reduction Of Mining Reward

Ethereum Community votes to decide reduction of mining reward The timing for the implementation of the third phase of Ethereum, Metropolis, is getting closer and closer, raising discussions among community members because of their implications in rewarding the validation of transactions on the network. Metropolis, in short, will serve as a bridge or transition stage for the change of the consensus mechanism of Ethereum, from the current Proof of Work (PoW), to the subsequent Proof of Stake (PoS). In Metropolis both consensus mechanisms will coexist simultaneously while the so-called "difficulty bomb" is implemented, a technical strategy that consists in increasing the difficulty of mining - reducing the profitability of this activity - in order to dissuade the miners from carrying out PoW, and persuading them to shift their activity progressively toward PoS. Eventually, the PoW of Ethereum will be completely deleted, starting its last development phase, which contemplates a consensus mechanism based exclusively on PoS: Serenity. As in every transition, not a few will be affected by change. The day of the implementation of the difficulty bomb, phase that has been christened Ice Age, is getting closer and closer, and members of the Ethereum community have not delayed in demonstrating their concern about what will bring them this new unknown stadium; Moreover, knowing that Ethereum Classic executed a hardfork precisely to avoid the explosion of the difficulty bomb. The launch of the difficulty bomb was expected to be carried out this March. However, this implementation has been delayed, apparently justified by a lack of consensus among community members on how to successfully complete this transition, confronted with the pressure placed on network architects and developer Continue reading >>

Carbonvote

Carbonvote

Carbonvote.com was initiated during the DAO hard fork and conducted vote in a secure web-page fashion with the feature that the voting conducted did not require coins to leave voters wallets. It had been a great source of reference when the community decided to go with the fork. Our thanks to all that participated in the last and our first round of the vote in DAO hard fork. In the face of the approaching Ice Age, we are faced with problems: The prolonged block time in the Ice Age does serve a purpose for reducing incentives for miners and so as to facilitate the adaption to the PoS hardfork(s); however, it is at the expense of slower responsiveness in the system. Appeals for removing the difficulty bomb and delaying the Ice Age are voiced in the community, but at the same time, it would also mean the continuous inflation of coins remains. Thus, we also see corresponding proposals for a reduction of Etherum coin emission to maintain the original more predictable supply plan, which would be beneficial for increasing investments and in the long run, a robust and stable growth for the platform. There it came EIP#186( ). EIP#186 is drafted in the spirit of preserving fast response of the system, ensuring a smoother transition to PoS, and at the same time a decrease in per-block rewards. Instead of a direct vote on EIP#186, we propose for a show of preference first. And as the discussion is both about choosing the direction of economic model and its policies, the motion is designed in a slightly more compound form to provide guidelines for detailed policy making that follows. Motion: The ice age should not be extended without at least some decrease in block rewards. In the case of the proposition, we would like to have a differentiation on the preferred per-block minimum re Continue reading >>

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