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Ethereum Network Difficulty

Ethereum's Difficulty Bomb: All Smoke, No Fire? - Coindesk

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 Calculator

Ethereum Mining Calculator

Enter hashrate data for responsive chart! Enter hashrate data for responsive chart! Estimated Future {{coinSymbol}} Generated To save your configurations, simply bookmark the page you are on currently (Ctrl + D) or save the URL below! The diff change is the rate at which the network difficulty is changing every month. Diff change is used for the estimated future profits graph and break-even analysis. Typically in crypto, network difficulty tends to increase over time, meaning a miner will generate less crypto with the same hardware. Accounting for this changing difficulty is essential to generate long term profitability predictions. The diff change value is calculated by looking at the current difficulty and comparing it to the 12 hour moving average of the difficulty one month ago. For smaller coins the diff change can sometimes be inaccurate due to a wildly fluctuating difficulty. The diff change factor can be disabled by either manually setting it to 0 or clicking a "Use Diff Change" switch found below the graph and in the break-even analysis section. Diff Change value is very large. Future profitability estimates may be inaccurate. Consider making Diff Change smaller or turning off Dynamic Difficulty. Hashrate is the only value you need to input to use this calculator, we do the rest of the work for you! Hashrate is the speed which you are mining, and is normally clearly displayed by your mining software or in the specifications for mining hardware. Make sure that you have the correct hashrate suffix selected. For example, if your miner reports 600 GH/s, ensure that GH/s is selected and not TH/s. The Break-Even Analysis feature can help you predict how long it will take to become profitable for a given setup. Time to break-even is calculated by comparing your hardw 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 >>

Ethereum Difficulty Historical Chart

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 >>

Is Ethereum Mining Profitable In 2018?

Is Ethereum Mining Profitable In 2018?

In this article we will try to figure out the profitability of Ethereum mining As the price of Ethereum isaround $1000 you may be wondering to yourself whether its worthwhile to mine ETH. Like Bitcoin, Ethereum is a proof-of-work coin that uses miners to confirm network transactions. The profitability of mining varies from person to person and changes over time usually becoming less profitable as the coin matures. In this article we will try to figure out the profitability of Ethereum mining. There are three important factors to consider: In a word, your mining rig needs to solve a mathematical algorithm to mine Ethereum. The mining difficulty of the network is a measurement of how difficult this algorithm is to solve. The higher the difficulty, the less Ethereum you receive for each unit of energy the GPU on your mining rig expends. As more miners join the network the difficulty increases. The Ethereum mining difficulty had been steadily increasing since the beginning of December with 1,500TH to ~2,500H. EtherscanEthereum Block Difficulty Growth Chart The daily block rewards of ETH have hardly changed since December and it is currently ~20.339 ETH. The hashrate is the speed in which your mining rig can solve the mathematical algorithm needed to validate a transaction. Miners with a high hashrate usually come with a high price tag, but they also typically use more electricity as they operate which could further drive your costs up. Average hashrate of ethereum network has increased since December from ~125492GH/s to ~203394GH/s, which is the highest rate of all time at the moment. Etherscan Ethereum Network HashRate Growth Rate Each mining rig works at a different level of efficiency and uses a variable amount of electricity. On the low end, miners typically draw ~100 Continue reading >>

Go Ethereum - What Is The Unit For Measuring Difficulty - Ethereum Stack Exchange

Go Ethereum - What Is The Unit For Measuring Difficulty - Ethereum Stack Exchange

What is the unit for measuring difficulty The last block of my private net has the difficulty of 5162920460. But what unit is it? Because it is not hash rate, the hash rate is when you divide the difficulty by the average block time which in my case is 5162920460/14 = 368780032.857142857 , which is 368.7 Mega hashes per second. Are my calculations correct? Just to note, the term isn't described in the glossary ( github.com/ethereum/wiki/wiki/Glossary ) but posting here as the link may help some people in the future. Nov 2 at 16:24 that glossary has a mistake. they are saying that the average time for finding a block in Ethereum is 1 min, this is incorrect, it is 14 seconds. quote: eg. N = 10 for Bitcoin and 1 for Ethereum Nulik Nov 2 at 16:43 Difficulty units are basically "hash/solution" (sort of). It's a measure of how much work is required to find a hash with some # of leading 0s. Your calculations are correct, difficult is designed to float with hash power, so you can estimate the current hash rate from the difficulty. (X hash/solution) / (Y second/solution) = Z hash/second In the case of Ethereum, Y=~14 seconds. The calculation for difficultly attempts to keep Y at ~14 seconds by modifying difficulty (X) to match the current hash rate (Z). However, the protocol is not inherently aware of Z, so it estimates Z based on the time between the current and previous blocks. Therefore we usually don't think of difficulty as having any specific units, except to act as a measure of how much work is required to find a block solution. If dividing the difficulty by seconds gives you Hashes/second then the unit of difficulty must by Hashes. However, the way it's defined in the yellow paper implies that it's a number that does not have any units (similar to coefficient of frictio Continue reading >>

The Mystery Behind Blocktime

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 >>

How Is The Mining Difficulty Calculated On Ethereum?

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 >>

Can And Will Eth Difficulty Drop? Low Eth Value Could Be Good For Us In The Short Term. : Ethermining

Can And Will Eth Difficulty Drop? Low Eth Value Could Be Good For Us In The Short Term. : Ethermining

As I am sure many of us have, I have been giving serious thoughts as to the feasibility of continuing mining vs. cashing in my hardware now and investing that straight into ETH. Long term I am a believer that we can see ETH hit $2k or maybe $3k, but right now with difficulty sky rocketing, things aren't looking so rosy in terms of getting ROI for my new rigs. What I am wondering is can ETH difficulty actually drop signifcantly? I don't understand the mechanics of how it works so I am hoping someone can enlighten me. Looking at the charts on CoinWarz I can see small dips, so I assume it is possible. Is it possible for it to go backwards significantly, in theory? Assuming it can go backwards, I am thinking that a drop in the value of ETH is actually the best thing for us. All the hashpower that services like Nicehash have directed at ETH can suddenly be redirected elsewhere as other coins appear to be more profitable in the short term. This in turn may actually decrease the difficulty, allowing those of us with goals of holding long term ETH to generate coins at a faster rate again. So, I am thinking... seeing ETH drop down in value for 6 months or so may actually be the best thing for those of us who believe in it long term and plan to hold till it hits $2k+. Continue reading >>

Mining - How Do I Decrease The Difficulty On A Private Testnet? - Ethereum Stack Exchange

Mining - How Do I Decrease The Difficulty On A Private Testnet? - Ethereum Stack Exchange

How do I decrease the difficulty on a private testnet? I've created a private test network. On the genesis.json file, I've changed the difficulty to 1. Yet, mining a block still takes hours on my CPU. I suspect that is due to some configuration related to the network adaptation. What is the correct procedure to decrease the difficulty on a private testnet, so that I can mine the first blocks in a not very powerful CPU? If the answer answered your concern, feel free to accept it as the correct answer by checking the tick sign below the voting buttons. niksmac Apr 1 '16 at 13:15 I'm not sure this answers solves my issue. As soon as I'm able to investigate I'll either accept it or post a comment stating why it didn't work. MaiaVictor Apr 1 '16 at 13:16 Sure, if you edit your question or post any comments below the answer, i might be able to recommend a solution. niksmac Apr 1 '16 at 13:47 You can make the difficulty static by modifying the CalcDifficulty in Geth to return a static number. Example: func CalcDifficulty(config *ChainConfig, time, parentTime uint64, parentNumber, parentDiff *big.Int) *big.Int { return big.NewInt(1)} Rebuild Geth and use your modified version. This is the same variable we set in genesis block right? If yes what is the advantages of this method? niksmac Jul 18 '16 at 8:44 @niksmac I edited to change difficulty to 1 so mining will always be fast. Otherwise, the difficulty will gradually increase and mining will take ~15 seconds, which is what's desired in Homestead, but probably not in your private chain. eth Jul 18 '16 at 8:59 Should I make this change and modification on all nodes that are connected to me private ethereum network? or on the enode that I am connecting into? If yes, does it affect the difficulty on ongoing private blockchain net Continue reading >>

The Real Cost Of Mining Ethereum

The Real Cost Of Mining Ethereum

Image Credit: Vitaliy Karimov/Shutterstock Just how profitable is it to mine Ethereum? To properly answer this question, lets start at the beginning: Lets construct a hypothetical mining rig, plug in some reasonable numbers, and come up with a pragmatic analysis of how much you can earn through Ethereum mining. Lets also hold the price of Ethereum static. By removing any profitability from the appreciation of Ethereum from the equation, well be able to correlate the actual rates of return exclusively with hardware, electricity, and any other costs associated with running a mining rig. Our assumption set uses numbers from January of 2018 that you can see below (we have done our best to use reasonable and middle-ground numbers): As you can see here, our hypothetical mining rig is more efficient and profitable than some of the best mining equipment on the market right now. We are assuming four GPUs that mine 40 MH/s each. The hardware specs are four GPUs, plus a processor, a motherboard, and a power supply rated at 1,000 Watts of electricity. The cost of this rig would be approximately $3,000. A reasonable cost of power is approximately 10 cents per kwh. This is below the national average for retail power rates in the U.S. To run a mining rig you will likely pay at least 10 cents per 1,000 watts run for each hour. This means one full day of mining comes with an electricity cost of $2.40. We will also use the block reward and block difficulty from January of 2018 as our base point. And we assume mining with a single rig is only reasonable when working with a mining pool. Some mining pools take up to 10 percent of your earnings, but some of the best only take 1 percent. For that reason, weve pick a modest 1.5 percent. Taking several points across Etherescans historical char Continue reading >>

What Is The Ethereum Ice Age?

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 >>

Ethereum Difficulty, What Is Happening - Ethermining

Ethereum Difficulty, What Is Happening - Ethermining

It's the windows update from last night. It took 30% off my claymore hashrate. Just dont say it, keep it quiet for the mining dudes who follow this things and make profit of it. Wait, can I trade my reddit Karma for ether!? Shh! Don't bring these things to light, quiet and mine... Alt coins are recovering in price making it more profitable to mine than ETH Chinese New Years taking a break from mining. Correlation doesn't equal causation, but god damn I cannot agree with this more. The company I work for relies heavily in certain areas of Chinese manufacturing and we are SOL for this week and next. That's just one farm having a temporary shutdown or power failure or something. That drop is equal to about 500 rigs. Not a big deal. has to be more than 500 rigs. my back-of-the-envelope math shows that there would only be 12-13,000 rigs for 500 to create a 4% drop like that. There is more than 13,000 rigs mining ETH. Considering these guys have 16,000 rigs to themselves, I'd say you're right. This drop is significantly more than 500 rigs. 4% of 236,293 GH/s is about 9,451,720 MH/s. Or somewhere around 315,000 rx580s. Definitely more than 500 rigs. Who/how does the difficulty get set? Last weekend ETH difficulty went up 5% in one day. Could that have been too high of an increase and this is a correction today? I guess difficulty is a function of the hash rate and time between mined blocks. Where D = difficulty, H = network hash rate, and T = time between blocks: It would make sense that it scales linearly. So, a 5% increase in hash rate might result in a 5% increase in difficulty. And vice-versa should the hash rate go down. That being said, I'm not sure it would take days before the difficulty corrected itself. As I understand it, the difficulty is pretty fluid and changes Continue reading >>

Mining Ethereum/wiki Wiki Github

Mining Ethereum/wiki Wiki Github

The word mining originates in the context of the gold analogy for crypto currencies. Gold or precious metals are scarce, so are digital tokens, and the only way to increase the total volume is through mining it. This is appropriate to the extent that in Ethereum too, the only mode of issuance post launch is via the mining. Unlike these examples however, mining is also the way to secure the network by creating, verifying, publishing and propagating blocks in the blockchain. Mining Ether = Securing the network = verify computation Ethereum Frontier like all blockchain technologies uses an incentive-driven model of security. Consensus is based on choosing the block with the highest total difficulty.Miners produce blocks which the others check for validity. Among other well-formedness criteria, a block is only valid if it contains proof of work (PoW) of a given difficulty.Note that in Ethereum 1.1, this is likely going to be replaced by a proof of stake model. The proof of work algorithm used is called Ethash (a modified version of Dagger-Hashimoto ) involves finding a nonce input to the algorithm so that the result is below a certain threshold depending on the difficulty. The point in PoW algorithms is that there is no better strategy to find such a nonce than enumerating the possibilities while verification of a solution is trivial and cheap. If outputs have a uniform distribution, then we can guarantee that on average the time needed to find a nonce depends on the difficulty threshold, making it possible to control the time of finding a new block just by manipulating difficulty. The difficulty dynamically adjusts so that on average one block is produced by the entire network every 12 seconds (ie., 12 s block time). This heartbeat basically punctuates the synchronisation Continue reading >>

How Difficulty Adjustment Algorithm Works In Ethereum

How Difficulty Adjustment Algorithm Works In Ethereum

How Difficulty Adjustment Algorithm Works in Ethereum In order to explain the logic of difficulty adjustment, we will use the go implementation of Ethereum which is generally called Geth. Source code of Geth can be found here. Difficulty adjustment algorithm is coded inin block_validator.go file, which can be found here. By difficulty adjustment we mean the logic in Ethereum using which Ethereum tries to keep mining time of the blocks between 10 to 19 sec. If difference in mining time is between 0 to 9 sec. then Geth tries to increase the difficulty to mine the block and if difference is 20 sec. or more, then Geth tries to reduce the mining difficulty of the system. In block_validator.go file, function CalcDifficulty is called to adjust the difficulty of the system and it returns the difficulty of the next block when it will be created. This function, in return, calls calcDifficultyHomestead or calcDifficultyFrontier depending on the configuration parameters. Latest version of Ethereum uses calcDifficultyHomestead function, therefore we will be reviewing calcDifficultyHomestead function. In order to calculate the difficulty of the new block, this function needs following input parameters: time Proposed time of formation of new block parentTime Time of formation of parent Block parentNumber Parent block, block number. Below is step by step process how difficulty of new block gets created. 1. First, difference between time of formation of parent block and new block is calculated. 2. Output of step 1 is then divided by 10 and integer of it is stored. This is done to create ranges. If output of step 1 is between 1 9 then output of this step will be 0. If output of step 1 is between 10 19 then output of this step will be 1. If output of step 1 is between 20 29 then output o Continue reading >>

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