Ethereum Mining Difficulty Bomb Steemcreated With Sketch.
in cryptocurrency 2 years ago (edited) The Ethereum Difficulty Time Bomb was planted on the Ethereum Blockchain almost two years ago on 7th of September 2015. The effects of the difficulty bomb would been felt since late 2016 if it wasnt for the implementation of the Hardfork to Homestead version of Ethereum which slowed it down and made it almost unnoticeable until recently. The Time Bomb is designed to increase the difficulty growth rate exponentially with each tick, making it impossible for the miners to keep up. It tick every 1000 blocks mined, adjusting the difficulty acceleration which raises block time and eventually making the Ethereum Blockchain freeze, hence the name Ice Age. Currently it takes about 15 seconds to generate a block. It is expected that by 2025 it will take up to 15 minutes. The effects of the time bomb should be felt at the end of 2017 / early 2018, giving us a few more months of profitable ETH mining. The scope of this difficulty algorithm is to force a transition from proof-of-work (POW) to proof-of-stake (POS) as ETH mining will become less and less profitable. This means that, instead of contributing hashing power to the Ethereum Blockchain and being rewarded for it, you will now require to hold a set number of ETH in a masternode and passively earn ETH. A majority of the ETH supply will be taken out of circulation by the masternode holders which can have a positive impact on the price of ETH. The Metropolis update will add, besides increased security and anonymity for the users with easier Smart Contract programing for the developers, the Casper protocol. This protocol will add the proof-of-stake system, forking the Ethereum Blockchain once again. POW and POS will run hand in hand on the new Blockchain until eventually mining will become Continue reading >>
What Is The Ethereum Difficulty Bomb?
Over the past few months, there has been a lot of speculation regarding Ethereums mining difficulty. This problem is known as the Difficult Bomb, and it poses a significant threat to the ecosystem. Or that is what most people think will happen if things ever come to such a point. Switching to proof-of-stake should make this a non-issue, though. Now is a good time to look at Ethereums difficulty bomb and what it could potentially mean for the network if left unchallenged. The Ethereum Difficulty Bomb Makes Mining Impossible It is important to understand the problem of the Ethereum difficulty bomb first and foremost. When Ethereum was first created, the developers had to create a consensus algorithm. Similar to Bitcoin, this consensus is achieved through mining in a proof-of-work environment. However, with the mining difficult going up over time, it could potentially create a problematic scenario. After all, it does not appear there will be ASIC-like mining hardware for Ethereum anytime soon. However, the Ethereum developers have come up with a different plan. From the outset, the plan was to make Ethereum mining impossible at some point in the future. This change will be introduced through an arbitrarily difficult block to mine, which will effectively create the difficulty bomb in question. As this difficulty bomb is activated on the network, the mining difficulty will skyrocket and eventually make Ethereum mining unfeasible and extremely unprofitable. Some people would expect this to be the end of Ethereum, but there is no reason to panic just yet. The goal is to switch over to a proof-of-stake algorithm before the Ethereum difficulty bomb can even become a problem. Right now, that PoS algorithm is still in development, albeit its completion appears to be imminent. Do Continue reading >>
Difficulty Bomb After Metropolis (byzantine) : Ethereum
Welcome to r/Ethereum , the front page of the Web 3. No inappropriate behavior. This includes, but is not limited to: personal attacks, threats of violence, gossip, slurs of any kind, posting people's private information. Keep price discussion and market talk, memes & exchanges to subreddits such as /r/ethtrader Keep plain ICO advertisements to subreddits such as r/ethinvestor . Keep mining discussion to subreddits such as /r/EtherMining . No creating multiple accounts to get around Reddit rules. English language only. Please provide accurate translations where appropriate. Posts and comments must be made from an account at least 10 days old with a minimum of 20 comment karma. Exceptions may be made on a discretionary basis. Continue reading >>
The Mystery Behind Blocktime
Identity Evangelist, Author, Blogger, Developer, Blockchain Enthusiast, Senior Director of Security Architecture at WSO2, Apache WS Committer, Axis PMC Member Block time defines the time it takes to mine a block. Both in bitcoin blockchain and ethereum blockchain, there is an expected block time, and an average block time. In bitcoin, the expected block time is 10 minutes, while in ethereum it is between 10 to 19 seconds. Both bitcoin and ethereum, at the time of this writing use a proof of work based distributed consensus algorithm (ethereum is planned to move to a proof of stake based algorithm with its serenity release). The expected block time is set at a constant value to make sure, miners cannot impact the security of the network by adding more computational power. The average block time of the network is evaluated after n number of blocks, and if it is great than the expected block time, then the difficulty level of the proof of work algorithm will be reduced, and if it is less than the expected block time then the difficulty level will be increased. Thats the core design principle behind block time, but you will see as we proceed, how bitcoin and ethereum differentiate themselves from each other. The level of difficulty varies with the time, as per the following formula. It tries to evaluate the speed of the mining network and find out how much it deviates from the expected level. The expectation is to mine a block in 10 minutes. For example, if the average speed of mining the last 2016 blocks is 8 minutes then the new difficulty factor will be greater than one, so the current difficulty level will be increased. In case the average is above 10 minutes, then the factor will be less than 1 and the difficulty level will be decreased for the next 2016 blocks. The d Continue reading >>
To Buy Or To Mine? Thoughts On Eth Mining Difficulty
TO BUY OR TO MINE? THOUGHTS ON ETH MINING DIFFICULTY One of the questions that has been posed to us is: given the meteoric rise in the prices of cryptocurrencies, why arent we just buying them? Or in other words, why invest hundreds of thousands in equipment, assembly, programming and then hundreds of more thousands in maintenance, power, rent, heating/cooling, when you could just avoid it all and buy into currencies that are rising 25%, 50%, 100%+ per month? Its a really good question. Here is our best answer: First, the current astronomical gains in cryptocurrencies are not going to last forever. Granted, we appear to be in a golden era where most mid to large-cap cryptocurrencies are sprinkled with profit-laced fairy dust. But if its too good to be true, it probably is, at least in the longer term.While we are Hodlers at heart, we are also realists that understand that potentially massive corrections could sweep various cryptos or the entire market. Second, we do believe that crypto is here to stay. I am not going to pontificate here when you can Google how blockchain is disrupting industry and get a million legitimate articles. Blockchain is here to stay and its impacts will be wide-ranging. Being a miner means being part of the blockchain, supporting it and strengthening it. Third, miners have great flexibility in that they can diversify and switch based on profitability. So as a miner we have a lot more choices outside of what Coinbase is offering. Lastly, and despite that proof of stake (PoS) may be much more desirable from an energy-consumption and environmental standpoint, truthfully proof of work (PoW) is the only practical way to presently validate transactions in a large and decentralized way. We believe that PoW is here for the long-term. As the decentrali Continue reading >>
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 Ice Age - An Overview On The Upcoming Difficulty Adjustment
The ethereum ice age is a codified difficulty adjustment, that was implemented as a failsafe, so as to ensure that the entire ethereum community, would be incentivized to accept new code modifications, that would allow for the functioning of a proof of stake consensus based algorithmic system. A hard-fork would need to be implemented for this purpose, in order for ethereum to move away from the currently in use, proof of work protocol. It was introduced on the 7th of September in 2015, almost 24 months ago, and was programmed to exponentially raise mining difficulty. There have been numerous proposals and suggestions since then, aimed at reducing the risk of a potential freeze of the entire network. However, due to the consistency and ease at which ethereum hard-forks are implemented, it may not end up proving that much of a problem in the long run. The metropolis hard fork might resolve the whole issue, by delaying the difficulty bomb . Ethereum classic has already solved the same conundrum, the ice age function was paused after the 3 millionth block. Although, it is a relatively simple concept, the present ice age/eth bomb confusion may be used by larger market participants for price manipulation, only time will tell whether this ends up being the case. A blockchain that is propelled by proof of work relies primarily on miners, who are often tasked with solving complex computations. These problems have to be moderately difficult, for the added security of the whole network and all of the accompanying chain transactions, but need not be overly difficult, so that the actual work can be verified by all of the participating network stakeholders. Proof of stake on the other hand, allows for the network to function by having blocks chosen in a deterministic (pseudo-random) Continue reading >>
Ethereum's Difficulty Bomb: All Smoke, No Fire? - Coindesk
Ethereum's Difficulty Bomb: All Smoke, No Fire? Sometimeinthe future(we can't be certain when), ethereum will likely switch from its proof-of-work consensus algorithm to Casper, a proof-of-stake system its developers are now in the throes of completing. While this may sound like a slight change to those who are unfamiliar, altering this one parameter will have an outsized effect.When the protocol change happens, the ethereum blockchain will hard fork, meaning that, for a short period of time, two networks the old and new will exist simultaneously. At that point, the goal for ethereum will be to persuade the majority of its users to upgrade to thenew proof-of-stake-powered blockchain. Otherwise, ethereum risks winding up creating another blockchain, as it did when a past technical update created ethereum classic . On the surface of things, getting the companies that use the ethereum network to switch should not be a problem. After all, proof of stake promises to be faster and more scalable, and to consume far less energy than proof of work. To most of the ethereum community, Casper sounds like a great deal. Unless, of course, you are a miner. That's because proof of stake doesnt rely on mining. Rather, it gives the job of creating the next block to those who own tokens on a blockchain a move that essentially puts miners out of a job . But, two things could go wrong with ethereum's big switch. One would be if Casper does not work as planned. In this case, ethereum could simply delay the switchover. The second is if miners continue mining the old chain. But ethereum has always had a plan for that something called the 'difficulty bomb'. Baked into ethereum shortly after the network launched, the difficulty bomb was created to make mining a block increasingly difficult over Continue reading >>
Ethereum Mining Difficulty Increased Significantly
Ethereum mining difficulty increased significantly What is the reason of Ethereum's abnormal difficultyincrease? Open-source blockchain-based distributed computing platform featuring smart contract functionality, which facilitates online contractual agreements For the last 24 hours, Ethereum mining difficulty increased by20%. ETC mining difficulty is now almost 1208234552666986.0, this is all-time record. This situation can be caused by so called "Difficulty bomb impact". Distributed databasethat is used to maintain a continuously growing list ofrecords, calledblocks. How this will affect the price of ETC in the medium and long term we cannot know. Today, 10 of July, Ethereum lost about 6% in last 24 hours. Now it's $229. The Ethereum Ice Age is a difficulty adjustment scheme that was put in place to ensure that everyone has an incentive to move to the new blockchain once the hard-fork is implemented. It was introduced on the 7th of September (2015-09-07), about 11 months ago and it's programmed to raise difficulty exponentially. It's impossible for miners to keep up with the increase of difficulty which would raise block time and it would make the blockchain freeze, hencethe name Ice Age. Continue reading >>
Crazy Jump In Ethereum Difficulty In The Past 12 Hours 08/25/2017 Another "dbomb
Crazy jump in ethereum difficulty in the past 12 hours 08/25/2017 another "Dbomb Crazy jump in ethereum difficulty in the past 12 hours , another difficulty bomb exploded Detailed info about Ethereum Difficulty Bomb here "In the end, the Ethereum difficulty bomb is quite an interesting way to set a development deadline for the switch to proof-of-stake. It sounds a lot more dangerous than it really is, since the development team has all of their ducks in a row. Moreover, the difficulty bomb will force the entire ecosystem to move over whatever the Ethereum ecosystem turns into after the next hard fork. Otherwise, users would be stuck with a blockchain that will not grow much longer once the mining difficulty spikes to unmanageable heights." Im not asking for donation for my advice , never will , but i'm supporting this Mom. I read her story somewhere , and I felt like I have to share with everyone ... You can support Her if You sign her petition 12+ exclusive games The Bitcoin Casino by Primedice Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here. The block times also went up. That should be the last ICE AGE difficulty adjustment before they push the next fork on September 17th, when the block times will go back to 15 seconds and the difficulty will go back to being predicated on the network hash rate. At the same time the block reward will also be reduced to ~3 ETH. Quote from: Vann on August 25, 2017, 03:24:58 PM The block times also went up. That should be the last ICE AGE difficulty adjustment before they push the next fork on September 17th, when the block times will go back to 15 seconds and the difficulty will go back to being predicated on the network hash rate. At the same t Continue reading >>
How Is The Mining Difficulty Calculated On Ethereum?
Having read various pieces of documentation, it's still not completely clear to me what dictates the difficulty rise, and how Ethereum difficulty levels differ to Bitcoin. In the past week difficulty has jumped from around 11 to over 17, whilst GH/s has fluctuated between 800.00 - 1400.00 but with no clear correlation between the two. Has the "difficulty bomb" now been introduced? And if yes, is there any way for approximating or calculating how much difficulty will likely rise by in the next 6-12 months? Related: If Serenity / PoS is unlikely to be introduced until early next year, has there been any suggestion from the dev team that the effects of this "difficulty bomb" will be reduced in either the homestead or metropolis releases? From : Mining difficulty is calculated from the time difference between blocks. The exact formula will change in Homestead. The symbol // in the following denotes integer division. block_diff = parent_diff + parent_diff // 2048 * (1 if block_timestamp - parent_timestamp < 13 else -1) + int(2**((block.number // 100000) - 2)) block_diff = parent_diff + parent_diff // 2048 * max(1 - (block_timestamp - parent_timestamp) // 10, -99) + int(2**((block.number // 100000) - 2)) The problem with the frontier formula and the reason for the change was that the frontier version doesn't take into account how far off from 13 seconds the block time was. A block mined 1 second after the previous one has the same effect on the difficulty as one mined after 12 seconds. This causes block difficulty to adjust to a median block time rather than a mean. Again, check out the EIP for more details. Apologies that I lack the the knowledge but how exactly would I use this to calculate? Seeing the difference "< 13 else -1" vs "// 10, -99" it's not clear to me what the Continue reading >>
What Is A Blockchain Explorer And Difficulty?
What is a Blockchain Explorer and Difficulty? Please note: This is a supplement to the Blockchain and Cryptocurrency Explained series. If you want to start from the beginning, go here . Blockchain explorer is one of the essential tools in any cryptocurrency. These explorers provide information on the status of the blocks, transactions and currency. We will cover some of the basic information related to blockchain explorers. Lets take two currencies side by side to understand this completely: Bitcoin Blockchain Explorer We can find out how the network is doing by looking at the below stats. Each piece of information can help us understand the currency better as whole. The height or last block number tells you the current blockchain length. If the height or last block is 100, then the current blockchain length is 100. The amount of computing power being utilized on the cryptocurrency network. This is normally denominated as H/s or hashes per second. It can be GH/s for giga-hashes per second or TH/s for tera-hashes per second If you remember our discussion on the email and Hashcash , computer needed to try every combination to find the correct combination and hash. Same formula applies here. So, when it shows that the network hashrate is: 1 GH/s or 1 Gigahashes per second Computers are trying 1 billion combinations (or hashes) each second to try and find the correct combination We want the hashrate to be higher as it will mean there are a lot of computers working on securing the cryptocurrency. Info is there on status page ( ): Cryptocurrencies need to ensure coin distribution is fair. Most of the coin supply is from block rewards (check part 4 ). So, cryptocurrencies tend to have an average block generation time. Bitcoins is 10 minutes. Every time a block is generated be Continue reading >>
Ethereum Difficulty Historical Chart
btc eth bch ltc dash btg xmr etc zec doge vtc ppc ftc nmc rdd blk aur nvc qrk mec bat btg bcc emc2 sc dgb nav sys pot vrc via kore wc dope cloak xwc icn unb ptc grc bela xst slr enrg efl trust btcd net rby uno btcs air sxc moon trc mint pxc bost grn hbn wdc cat super zet qtl utc plc xpy bits top cc nyan arg fire uro con hal Continue reading >>
Chasing Profit? Bitcoin Miners Swap Networks As Difficulty Swings - Coindesk
Chasing Profit? Bitcoin Miners Swap Networks As Difficulty Swings Since bitcoin cash split from the bitcoin blockchain, miners have had a choice: which of two blockchains to mine? At play in their considerations are two factors: ideology and profitability.But while it's possible some miners are choosing bitcoin or bitcoin cash based on preference, a certain contingent seem to be following the money. How do we know? At block 481,824 yesterday, the bitcoin cash blockchain saw a notable difficulty adjustment. At the time, blocks were being found on bitcoin cash at a rate of about one 1-2 minutes, or less. As a result, the difficulty went up by 300%, the maximum allowed under the difficulty adjustment rules. Both bitcoin and bitcoin cash adjust difficulty downward every 2,016 blocks, though in the case of bitcoin cash, the length of time this takes varies depending on how long it takes blocks to be discovered. If the previous 2,016 blocks took less than two weeks, difficulty goes up, if more than two weeks, difficulty goes down. Changing the dynamic between the chains is that because of this unique rule and yesterday's change,bitcoin cash is now much less profitable to mine than bitcoin. And miners seem to be responding, as a lot of mining hash power seems to have left bitcoin cash and moved to bitcoin. At its peak, bitcoin cash had 44% of all hash power compared to bitcoin's 56%. As of this writing, BCH has about 26% compared to BTC's 74%, according to data from fork.lol , a data site that has sprung up to cover the narrative. As of this writing, bitcoin is averaging slightly less than six blocks per hour over the last eight hours, while bitcoin cash is averaging a little over one block per hour in the same time period. The next difficulty adjustment on either chain is ex Continue reading >>
What Is The Ethereum Ice Age?
Ethereum is currently a Proof of Work cryptocurrency, meaning that computational power is needed, not only to produce new coinsbut to process transactions and to keep the entire ecosystem moving. In order to ensure the system is scalable and decentralized, Ethereum plans to move to a Proof of Stake protocol where a lot lesscomputational power is required and miners can earn rewards according to their balance. The Ethereum Foundation is still working on the Proof of Stake protocol, Casper. Since Casper is not finished and it's not contained in the release version of Ethereum a hard-fork might be required to implement this change. An hard-fork creates an incompatibility between the previous version and the latest, there is always the possibility to create a "split" that result in two blockchains, like Ethereum Classic , did on the 1920000th block, after the hard-fork to refund The DAO token holders took place . In order to ensure such event doesn't take place (although it did already) and to give themselves a time-frame to finish Casper (making the community aware of the introduction of a hard fork within that time-frame), a Difficulty Time Bomb, is also known as Ice Age was implemented in Ethereum. The Ethereum Ice Age is a difficulty adjustment scheme that was put in place to ensure that everyone has an incentive to move to the new blockchain once the hard-fork is implemented. It was introduced on the 7th of September (2015-09-07), about 11 months ago and it's programmed to raise difficulty exponentially. It's impossible for miners to keep up with the increase of difficulty which would raise block time and it would make the blockchain freeze, hencethe name Ice Age. The key part is the calculation for the increase in difficulty is Math.pow(2,Math.floor(block.number / 10 Continue reading >>