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Ethereum Maximum Block Size

Study Shows Bitcoin And Ethereum Are Far Too Centralized Right Now

Study Shows Bitcoin And Ethereum Are Far Too Centralized Right Now

Whenever new research surfaces regarding Bitcoin and other cryptocurrencies, interesting things are bound to happen. The latest publication of such research on Hacking Distributed points out some interesting aspectsof Bitcoin and Ethereum. None ofit is actually surprising, butit does show that some things will need to change very soon. Thats especially true in regards to Bitcoin, as it is clearly underutilizing the potential of its technology right now. The research posted on Hacking Distributed points out some very interesting things about both Bitcoin and Ethereum. Although people familiar with these projects know all too well that things have not necessarily evolved in the right direction, its always good to see independent researchers come to similar conclusions. More specifically, the state of both Bitcoins and Ethereums networks is anything but optimal right now. Changing that situation will not be easy either, as there are quite a few things that will need to be addressed. First of all, the research shows how Bitcoin is not utilizing its network to its full potential. More specifically, there is nothing preventing the Bitcoin network from using on-chain scaling solutions such as an increased block size. Contrary to what some people expect, such a block size increase will not necessarily increase CPU and disk space requirements in a major way.Thats because the hardware needed to process such transactions has become a lot cheaper in price. There is no quantitative argument in regards toBitcoins maximum block size. In a way, thatalone validates what Bitcoin Cash is doing. Rather thanuse a solution such as SegWit , the developers simply increased the maximum block size to 8MB. Many Bitcoin Core supporters assumed this was the wrong course of action, but it turns out Continue reading >>

A Gentle Introduction To Ethereum

A Gentle Introduction To Ethereum

Ethereum builds on blockchain and cryptocurrency concepts, so if you are not familiar with these, its worth reading a gentle introduction to bitcoin and a gentle introduction to blockchain technology first. This article assumes the reader has a basic familiarity with how Bitcoin works. Ethereum is software running on a network of computers that ensures that data and small computer programs called smart contracts are replicated and processed on all the computers on the network, without a central coordinator. The vision is to create an unstoppable censorship-resistant self-sustaining decentralised world computer. The officialwebsite is Itextends the blockchain concepts from Bitcoin which validates, stores, and replicates transaction data on many computers around the world (hence the term distributed ledger). Ethereum takes this one step further, and also runs computer code equivalently on many computers around the world. What Bitcoin does for distributed data storage, Ethereum does for distributed data storage plus computations. The small computer programsbeing run are called smart contracts, and the contractsare run by participants on their machines using asort ofoperating system called a Ethereum Virtual Machine. To run Ethereum, you can download (or write yourself if you have the patience) some software called an Ethereum client. Just like BitTorrent or Bitcoin, the Ethereum client will connect over the internet to other peoples computers running similar client softwareand start downloading the Ethereum blockchain from them to catch up. It will also independently validate that each block conforms to the Ethereum rules. What does the Ethereum client software do? You can use itto: Create new transactions and smart contracts Your computer becomes a node on the network, r Continue reading >>

How Will Ethereum Scale?

How Will Ethereum Scale?

Like other public blockchains, ethereumintends to support as many users as it can. The problem is that, today, we don't really know the limits of theplatform. Because of a hard-coded limit on computation per block, the ethereum blockchain currently supports roughly 15 transactions per second compared to, say, the 45,000 processed by Visa. This limitation of ethereum and other blockchain systems has long been the subject of discussion by developers and academics. While ethereum developers might like to highlight how the flexible smart contract platform differs from bitcoin, for example, it isn't unique in regards to scalability. As disappointing as that might sound, there's hope in proposed solutions that havent made it into the official software yet. Ethereum and bitcoin use a combination of technical tricks and incentives to ensure that they accurately record who owns what without a central authority. The problem is, its tricky to preserve this balance while also growing the number of users (especially to the point where average people can use the system to purchase coffee or run applications). That's because ethereum depends on a network of 'nodes', each of which stores the entire ethereum transaction history and the current 'state'of account balances, contracts and storage. This is obviously a cumbersome task, especially since the total number of transactions is increasing approximately every 1012 seconds with each new block. The worry is that, if developers raise the size of each block to fit more transactions, the data that a node will need to store will grow larger effectively kicking people off the network. If each node grows large enough, only a few large companies will have the resources to run them. Despite the inconvenience, running a full node is the best w Continue reading >>

What Is Ethereums Block Size? : Ethereum

What Is Ethereums Block Size? : 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 >>

What Is The Block Size Limit

What Is The Block Size Limit

If you've been in crypto for a while, you've heard of the block size and the everlasting debate that surrounds it. This debate has plagued the community for years and it has pretty much torn it apart into two groups: Those in favor of a blocksize increase and those against it. But maybe you haven't been around long enough to know what the block size and the block size limit mean and why it's so heavily debated in the crypto sphere. The block size issue is much more than just a curiosity or technicality and it could indeed define the future of Bitcoin as a mainstream currency. So, what is the block size and why does it matter? Why are there groups that defend the block size limit while others push for an immediate increase? As you most likely know, Bitcoin is a blockchain-based cryptocurrency. All the transactions that take place within the network are recorded on this blockchain, a public ledger that can be seen by anyone but changed by no one. This ledger is made up of blocks that fit together cryptographically (hence the name, blockchain). When a user makes a transaction, said transaction is included in the block that is being mined at the time, and will later be confirmed by the blocks that follow it. The more blocks there are on top of your transaction, the safer it is to assume it is immutable. Transactions, at its most basic level, are made up of data which is usually composed of the information regarding the transaction itself. This data, like any other, takes up space on the block it is included. Currently, each block on the Bitcoin blockchain is able to contain 1mb of data, meaning that the block size of bitcoin is 1 megabyte. This means that there is a limit to how many transactions can fit in Bitcoin's blocks, according to the data contained in said transact Continue reading >>

Charts: Determining The Ideal Block Size For Bitcoin

Charts: Determining The Ideal Block Size For Bitcoin

Charts: Determining the Ideal Block Size for Bitcoin Mar 24, 2017 at 18:35 UTC|UpdatedMar 26, 2017 at 10:17 UTC Willy Woo is an entrepreneur, investor, trader and cryptocurrency enthusiast. In this guest piece , Woo weighs in on the block size, analyzing the charts to offer a novel take on bitcoin's big debate. Ultimately, he finds that there's little evidence to suggest current network congestion is a fatal flaw. Bitcoin has been operating for eight years, from the early days when we only saw a few transactions in each block, through to today, where blocks are crammed packed and congestion is the norm. One benefit of seeing congestion this early in bitcoin's life is we get a great set of data of the network under load. In this study, we'll take a look at bitcoin's transactional data to see if it points to an ideal block size (if there even is such a thing). The chart above shows the transactions per second on the bitcoin network over time. It's a log graph that shows exponential growth as straight lines, where the bubbles denote the size of bitcoin's mempool (think of it as a kind of storagetankthat temporarily holds transactions before they are processed). Despite users complaining that the blocks are now crammed full, and that the network overloading, this graph tells a surprising story.While we see by Q4 of 2016, the mempool swelling to take up peak loads, the network catches up off-peak. The network is keeping up with exponential demand. Yes, we are seeing congestion, but no, we are not yet turning away any significant transaction volume due to this congestion. If this was true, we'd see this as a downwards arc on our log graph instead of our straight line. But that's not to say wearen't very close to the limits soon and our arc away from a straight line will like Continue reading >>

Miners Boost Ethereum's Transaction Capacity With Gas Limit Increase - Coindesk

Miners Boost Ethereum's Transaction Capacity With Gas Limit Increase - Coindesk

Miners Boost Ethereum's Transaction Capacity With Gas Limit Increase Ethereum miners are raising the network's transaction capacity, a move that comes amid criticism about blockchain congestion. Network data shows that the gas limit of ethereum's transaction blocks has been on the rise since earlier today. Gas is a kind of computation cost within ethereum, which users pay in order to issue transactions or perform other actions on the network. A higher gas limit means that more more actions couldbe performed per-block. According to data on ethereum statistics provider Etherchain , the increase started around 9:20 UTC, crossing the 5m mark just before 11:00 UTC. At press time, the network's limit is roughly 6.3m gas, representing a roughly 33% increase overall. Complaints about congestion have come about in light of recent initial coin offerings , during which a higher-than-average amount of transactions leads to longer waiting times for inclusion in a block,haveled to calls from some segments of the ethereum community for the gas limit to be increased. Both the cost of gas itself as well as where the limit ought to be set has implications for the network's functionality as well as its decentralization, as previously explored by CoinDesk. Yet some miners were initially slow to adopt the raisedgas limit despite calls for an increase, as a higherlimitcan increase the frequency of uncle blocks, or blocks that are mined but don't form the longest chain of transactions. Unlike bitcoin's orphaned blocks, ethereum's uncle blocks are compensated. The gas limit increase comes as the ethereum network continues to see a rise in the total amount of transactions per-day. Data from Etherscan shows that on 26th June, the network saw 316,788 transactions, the most-ever recorded on the n Continue reading >>

Accounts, Transactions, Gas, And Block Gas Limits In Ethereum

Accounts, Transactions, Gas, And Block Gas Limits In Ethereum

Accounts, Transactions, Gas, and Block Gas Limits in Ethereum This article is meant to help people understand some of the basic mechanics behind accounts, transactions, gas, and the role miners play in setting the block size in Ethereum. Corrections are welcome :) There are two types of accounts in Ethereum can send transactions (ether transfer or trigger contract code), code execution is triggered by transactions or messages (calls) received from other contracts. when executed - perform operations of arbitrary complexity (Turing completeness) - manipulate its own persistent storage, i.e. can have its own permanent state - can call other contracts All action on the Ethereum block chain is set in motion by transactions fired from accounts. Every time a contract account receives a transaction, its code is executed as instructed by the input parameters sent as part of the transaction. The contract code is executed by the Ethereum Virtual Machine on each node participating in the network as part of their verification of new blocks. The term transaction is used in Ethereum to refer to the signed data package that stores a message to be sent from an externally owned account to another account on the blockchain. a signature identifying the sender and proving their intention to send the message via the blockchain to the recipient, VALUE field - The amount of wei to transfer from the sender to the recipient, an optional data field, which can contain the message sent to a contract, a GASLIMIT value, representing the maximum number of computational steps the transaction execution is allowed to take, a GASPRICE value, representing the fee the sender is willing to pay for gas. One unit of gas corresponds to the execution of one atomic instruction, i.e. a computational step. Contrac Continue reading >>

Bitcoin And Ethereum Vs Visa And Paypal Transactions Per Second

Bitcoin And Ethereum Vs Visa And Paypal Transactions Per Second

Bitcoin and Ethereum vs Visa and PayPal Transactions per second One of the big debates happening in the Bitcoin community is over the specification of block sizes, which limits the maximum number of transactions that may be processed per second. Luno, a Bitcoin exchange and wallet provider, recently explained that transacting in Bitcoin has become painfully slow. It is also much more expensive than it was a few years ago. Atheoretical maximum speed for Bitcoin that has been circulating online is seven transactions per second. However, in reality the Bitcoin network is achieving maximums of 3 to 4 transactions per second. This seems low, and raises the question: How does Bitcoins maximum transaction capacity compare to the likes of Visa, PayPal, and cryptocurrency Ethereum? A few solutions have been proposed for the Bitcoin block size issue. One is Bitcoin Unlimited, which proposes removing the block size limit. Another is Segregated Witness, which proposes doubling the block size. There is no consensus in the Bitcoin community on which direction to take as yet, with support for Bitcoin Unlimited at around 36% and support for SegWit at around 27%. Support is measured as a percentage of the total Bitcoin mined over a specific period, with several miners not indicating explicit support for either of the two proposals. Towards the end of 2016, ETHNews reported that Ethereum had an estimated speed limit of around 20 transactions per second. A system called Raiden is in development that will use Ethereum smart contracts to increase the maximum speed to as high as one million transactions per second. The first version of Raiden was due out by the end of March , butthere have been no newupdates from the team since February. PayPal 193 transactions per second average PayPal han Continue reading >>

Satoshis Best Kept Secret: Why Is There A 1 Mb Limit To Bitcoin Block Size

Satoshis Best Kept Secret: Why Is There A 1 Mb Limit To Bitcoin Block Size

Satoshis Best Kept Secret: Why is There a 1 MB Limit to Bitcoin Block Size Bitcoins scaling crisis was one of several things Satoshi and earlier Bitcoiners never anticipated. Heres how that 1 MB blocksize limit got put there. Anybody familiar with Bitcoin is aware of the vexing problem caused by the 1 MB blocksize limit and the controversy that arose over how to scale the network. Its probably worthwhile to look back on how that limit came to exist, in hopes that future crises can be averted by a solid understanding of the past . In 2010, when the blocksize limit was introduced, Bitcoin was radically different than today. Theymos, administrator of both the Bitcointalk forum and /r/bitcoin subreddit, said, among other things : "No one anticipated pool mining, so we considered all miners to be full nodes and almost all full nodes to be miners. I didn't anticipate ASICs, which cause too much mining centralization. SPV is weaker than I thought. In reality, without the vast majority of the economy running full nodes, miners have every incentive to collude to break the network's rules in their favor. The fee market doesn't actually work as I described and as Satoshi intended for economic reasons that take a few paragraphs to explain." It seems that late in 2010, Satoshi realized there had to be a maximum block size, otherwise some miners might produce bigger blocks than other miners were willing to accept, and the chain could split. Therefore, Satoshi inserted a 1 MB limit into the code. Yes, Satoshi kept this change a secret until the patch was deployed, and apparently asked those who discovered the code on their own to keep quiet . He likely kept things quiet to minimize the chances that an attacker would figure out how to use an unlimited blocksize to DOS the network. Sat Continue reading >>

Qtums Block Size Limit Will Be Governed By Smart Contracts: Heres How

Qtums Block Size Limit Will Be Governed By Smart Contracts: Heres How

Qtums Block Size Limit Will Be Governed by Smart Contracts: Heres How Qtum is an up-and-coming smart contract platform set to launch in September of this year. Sometimes ambitiously referring to itself as Chinas Ethereum, the project recently raised $15 million in three days through a successful crowdsale or Initial Coin Offering (ICO). On a technical level, the Qtum blockchain will resemble Bitcoin, but will integrate an Ethereum-like Virtual Machine on top for smart contracting purposes. Additionally, Qtum is in the process of implementing a Decentralized Governance Protocol (DGP). This DGP will have smart contracts determine the blockchains parameter selection, like its block size limit. Jordan Earls, also known as earlz online, is the co-founder and lead developer of Qtum. We believe this will allow for Qtum to be the first self-modifiable, self-regulating and ultimately self-aware blockchain, he told Bitcoin Magazine. Any blockchain has a number of parameters. In Bitcoin, this of course includes the 1 megabyte block size limit. But it also includes the block reward (currently 12.5), the block interval time (ten minutes) and more. These and three other parameters apply to Qtum as well. But there are two basic problems with needing to have these parameters. First, they are very hard to get right, in so far as thats even possible, since different parameters benefit different use cases. And second, in a decentralized system, these parameters can be very hard to change. The core rationale and problem we had when designing this is that we will release Qtum with some initial parameters that we try to make perfect, Earls told Bitcoin Magazine. But we don't know what the ecosystem will look like one month after release, much less one year. So, we designed DGP. That way, we Continue reading >>

What Is Ethereum? A Comprehensive Explanation - Coin Bureau

What Is Ethereum? A Comprehensive Explanation - Coin Bureau

Ethereum is currently the second most valuable crypto currency by market capitalisation. It has become the staple crypto currency for investors to hold in their portfolio. It has been said by a number of people that Ethereum can greatly change the way we think about the client server model . Many claim that is has the potential to revolutionise the way we think about all business. Ethereum has also become the de-facto crypto currency for people to take advantage of ICOs. People use the Ethereum network and tokens in order to offer their own tokens to the general public. Yet, what is Ethereum and how is it different from Bitcoin? Put simply, Ethereum is software that is running on a distributed network of computers which ensures that smaller programs (called smart contracts) are replicated and executed across the network. Given the decentralised nature of Ethereum, there is no central server or co-ordinating system. The long term goal of the Ethereum network is to create one large decentralised virtual machine. Similar to Bitcoin, Ethereum makes use of blockchain concepts to validate, store and replicate transaction data across all of the network nodes. It extends beyond this simple concept by including the computation of the smart contract codes on the network. Therefore, while Bitcoin looks to store data about the recorded transactions on the network, Ethereum takes it one step further by including the computation of the smart contract programs on the network. Before we can delve into the underlying technology that makes Ether unique, it helps to take a step back and look at what Bitcoin and Ethereum share in common. Like Bitcoin, Ethereum has a blockchain made up of all transaction blocks prior. Inside these blocks, we have information on the transactions that took p Continue reading >>

Block Size Limit Controversy

Block Size Limit Controversy

In 2010, a block size limit of 1 MB was introduced into Bitcoin by Satoshi Nakamoto . He added it as a safety measure to prevent miners from creating large spam blocks. However, the limit was not changed again before Nakamoto disappeared. As transaction volume increased with widespread Bitcoin adoption, increasing the limit became subject to heavy debate in 2015. However, most proposals involved hard forking changes. To prevent Bitcoin from temporarily or permanently splitting into separate payment networks ("altcoins"), hard forks require adoption by nearly all economically active full nodes. Arguments in favor of increasing the blocksize Off-chain solutions are not yet ready to take off the load from the main blockchain. Increased blocksize will leave space for extensions like Mastercoin, Counterparty, etc. Neutral: Bitcoin competitors will have lower fees Negative: Bitcoin full nodes are forced to use more resources that don't support Bitcoin Small blocks eventually will require higher fees for fast confirmations. Positive: It will no longer be cheap to spam transactions such as Satoshi Dice bets Positive: Fees will not be zero. This is eventually a necessity in order to incentivize miners and secure the mining ecosystem Negative: Bitcoin may look unattractive to new users with high fees Negative: High fees may stop or reverse global adoption, investment, development, support and centralization A low blocksize limit encourages higher transactions fees to incentivize miners ("let a fee market develop"). A fee market naturally develops due to miner latency regardless [1] The relay network can be optimized so that miners don't have a stale rate increasing with latency. This should cause the fee market to once again require a block size limit to exist. Arguments in oppo Continue reading >>

Blockchains Dont Scale. Not Today, At Least. But Thereshope.

Blockchains Dont Scale. Not Today, At Least. But Thereshope.

Blockchain Engineer. I have a passion for understanding things at a fundamental level and sharing it as clearly as possible. Blockchains dont scale. Not today, at least. But thereshope. The first Bitcoin paper was first released in 2008. My excitement about the potential of blockchain technology has been building ever since. Decentralized digital currency, once just a far-fetched goal, is finally making inroads into the mainstream. While thats exciting on its own merit, Im personally most excited about the potential for decentralized applications. Financial exchanges, prediction markets, and asset management platforms all carry enormous potential. The trustless systems supporting them are no less intriguing; identity verification systems, smart property, censorship resistant social platforms, and autonomous structures and governance models like DAOs . The most disruptive use cases probably havent even been dreamt up yet. But this dream still remains a dream for the foreseeable future while a few early enthusiasts and entrepreneurs are experimenting with building such applications, theres still a big missing piece that prevents us from seeing these applications come to fruition: scalability. Blockchains, as it stands today, are limited in their ability to scale. Thats not to say that this will be the case forever, but its definitely true today. In fact, Id argue its one of the biggest technological barriers we face with blockchain technology today. Its quickly become a very active area of research among researchers in the community and cryptocurrency in general. Currently, all blockchain consensus protocols (eg. Bitcoin, Ethereum, Ripple, Tendermint) have a challenging limitation: every fully participating node in the network must process every transaction. Recall that Continue reading >>

The Ethereum Community Demonstrates Its Strength: How Ethereum Solved Its Own Block-size Controversy

The Ethereum Community Demonstrates Its Strength: How Ethereum Solved Its Own Block-size Controversy

The Ethereum Community Demonstrates Its Strength: How Ethereum Solved Its Own Block-Size Controversy Slow transaction times, high transaction fees, and a static gas limit were plaguing the Ethereum network, leading some to wonder if this was the emergence of a rift between miners and developers. But in less than a month, the two factions worked together to raise the gas limit and avoided what could have become Ethereums own block-size stand-off. Note: This article attempts to break down a complicated issue so that readers of every technical ability can understand. However, that makes it very long. Section headers are included to help readers navigate to the parts that meet their interest/technical level. Twenty-nine days ago, Ethereum Foundation (EF) contributor and Oaken Innovations co-founder Hudson Jameson alerted the community that the recent surge in token offering (TO) popularity may lead to severe network congestion and high transaction costs over the coming weeks. In a reddit post , he explained his belief that a temporary fix miners had implemented late last year in response to a Denial of Service (DoS) attack is what was causing blocks to fill up, or reach the limit of acceptable transactions per block, requiring many users to endure long wait times and high fees to send transactions on the network. Recognizing the frustration that users unaccustomed to Ethereums evolutionary rate might have with these long wait times, he suggested that miners raise their gas limit and gas price settings to help alleviate these issues. He called for miners to re-institute a pre-DoS attack adaptive gas limit that would track a moving average of previous block use and organically grow (or shrink) to help prevent blocks from filling up. In a discussion with ETHNews, Jameson expl Continue reading >>

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