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Ethereum Proof Of Stake Minimum

Proof-of-stake - Wikipedia

Proof-of-stake - Wikipedia

This article may rely excessively on sources too closely associated with the subject, potentially preventing the article from being verifiable and neutral . Please help improve it by replacing them with more appropriate citations to reliable, independent, third-party sources . ( Learn how and when to remove this template message ) Proof-of-stake (PoS) is a type of algorithm by which a cryptocurrency blockchain network aims to achieve distributed consensus . In PoS-based cryptocurrencies the creator of the next block is chosen via various combinations of random selection and wealth or age (i.e. the stake). In contrast, the algorithm of proof-of-work (PoW) based cryptocurrencies (such as bitcoin ) rewards participants who solve complicated cryptographical puzzles in order to validate transactions and create new blocks (i.e. mining ). Proof-of-stake must have a way of defining the next valid block in any blockchain. Selection by account balance would result in (undesirable) centralization, as the single richest member would have a permanent advantage. Instead, several different methods of selection have been devised. Nxt and BlackCoin use randomization to predict the following generator, by using a formula that looks for the lowest hash value in combination with the size of the stake. [1] [2] [3] Since the stakes are public, each node can predict - with reasonable accuracy - which account will next win the right to forge a block. Peercoin 's proof-of-stake system combines randomization with the concept of "coin age," a number derived from the product of the number of coins times the number of days the coins have been held. Coins that have been unspent for at least 30 days begin competing for the next block. Older and larger sets of coins have a greater probability of sign Continue reading >>

Top 7 Profitable Proof Of Stake (pos) Cryptocurrencies

Top 7 Profitable Proof Of Stake (pos) Cryptocurrencies

Top 7 Profitable Proof Of Stake (POS) Cryptocurrencies By: Sudhir Khatwani In: Cryptocurrency Last Updated: Lets talk about popular proof of stake cryptocurrencies today And I know one more important question that might cross your mind would be:-Whyproof of stake cryptocurrencies? Why should one know them? Whats so special about them? So to answer such questions lets get started Proof of stake (aka POS) cryptos has many technical benefits but apart from that some proof of stake cryptos also give different economic benefits/dividends to its HODLers by giving them the option of running a masternode or staking their coins in a stake-able wallet. To simply put into perspective i.e you can earn by just holding many POS cryptocurrencies. This provides dual benefits of securing the blockchain network as well as creating an opportunity for users to get incentives or dividends on their holdings. I have already written in detail about the distributed proof of stake (POS) cryptocurrencies and its consensus mechanism in my previous article which you can read here . But for the newcomers, let me explain what distributed consensus and POS is: Distributed consensus simply means a large pool of people who are geographically segregated agreeing on something. In cryptocurrencies like Bitcoin , something here means agreeing on which transactions or blocks are valid and which are invalid to be added/rejected to the blockchain. Proof of stake is a typical computer algorithm through which some cryptocurrencies achieve their distributed consensus. Itis also a better alternative to the proof of work algorithm by achieving the same distributed consensus at a lower cost and in a more energy efficient way. (For more details on POS vs POW read here ) So if you are holding any such POS cryptocurre Continue reading >>

Alpha Casper Ffg Testnet Released, Ethereums Pos Excitement Grows

Alpha Casper Ffg Testnet Released, Ethereums Pos Excitement Grows

Ethereums march toward Proof of Stake (PoS) continues, as researcher Karl Floersch has just released a guide on how to use an alpha Casper FFG testnet through pyethereum. The testnets parameters which are not finalized currently require 1,500 ETH as a minimum staking amount. Join the Bitsonline Telegram channel to get the latest Bitcoin, cryptocurrency, and tech news updates: ETH Community Continues March Toward Casper In what many Ethereum users will consider a symbolic cap to a strong year, Floersch released the Alpha Casper FFG Testnet Instructions earlier this morning on 2017s final day. There are two versions of Casper Ethereums researchers are currently working with: Casper FFG (Friendly Finality Gadget) and Casper CbC (Correct-by-Construction). The former model, which Floerschs freshly released testnet is based off of, will manage Ethereums shift from Proof of Work (PoW) to PoS. Likewise, Casper CbC will be used to manage Ethereums consensus process after the shift to PoS has been finalized. When over, this transition will allow Ethereum users to stake ether to validate the network, as opposed to the mining thats currently required through PoW. For users interested in taking the new FFG testnet for a spin, its only available for now through the pyethereum client. In his guide, Floersch was careful to keep expectations realistic, noting that: pyethereum [] has a much lower processing capacity than clients implemented in faster languages; as a result, network parameters will be heavily restricted to ensure network sustainability.Do not expect performance equivalent to test networks operated by more performant clients such as Geth and Parity. The researcher also explained how prospective participants could become test validators: First, you will need to have enough Continue reading >>

Is Proof Of Stake Really The Solution?

Is Proof Of Stake Really The Solution?

Proof of Work is said to have the problem of 51% Attack. How better Proof of Stakeis? Theres been some heat going around the Ethereums decision to move from proof-of-work to proof-of-stake. With this, its natural to have hundreds of questions pop up everywhere. I will try to explain the fundamental difference between the two consensus methods. I will also tell why do some prefer proof-of-stake over proof-of-work and others dont. Then, itll be up to you to make up your mind. Ill keep using the term timestamping throughout the post. It means the network reaching to a consensus for a block. The majority of the network must be a consensus about a block for it to be appended to the chain. When a block is appended to the chain, it gets timestamped, thus, the term. I explained proof-of-work in the ultimate guide in plain English to understand Blockchain . If you havent read it yet, please do, because we will be carrying it forward from there in this blog post. By the way, I am the editor of a weekly newsletter, Unmade , which delivers one idea from the future to your inboxes. Work is much more fun than fun. NoelCoward In proof-of-work, nodes in the network work to put a block of transactions at the end of the ever growing chain. This work involves calculating a hash of the block with some specific requirements. Whoever completes the calculation first gets rewarded with some amount of the cryptocurrency. And thats where the catch of this method lies whoever does it first gets the reward. Thus, to get the reward, nodes tend to put heavy rigs at computational work so that they can be the first. It makes the overall network expensive to keep running. Also, there are laws of physics that govern the rate at which the computers can evolve and scale. Thats not enough as the average c Continue reading >>

The Inevitable Failure Of Proof-of-stake Blockchains And Why A New Algorithm Is Needed (op-ed)

The Inevitable Failure Of Proof-of-stake Blockchains And Why A New Algorithm Is Needed (op-ed)

The Inevitable Failure of Proof-of-Stake Blockchains and Why a New Algorithm is Needed (Op-Ed) One of the driving factors behind cryptocurrency is the fact that it is decentralized, meaning that no individual or group controls it. Instead, it is controlled by everyone participating in the particular cryptocurrency's network. One of the driving factors behind cryptocurrency is the fact that it is decentralized, meaning that no individual or group controls it. Instead, it is controlled by everyone participating in the particular cryptocurrency's network. The more people in the network, the more resistant it is to different kinds of attacks. A cryptocurrency itself has no single point of failure, as it would be said in the computer security world. This means that in order for someone to compromise a cryptocurrency as a whole, they would need to compromise more than one aspect of it. For example, let's say that someone managed to break into a single Bitcoin wallet; they have not compromised the network and they have not compromised every Bitcoin wallet. They have only compromised that one Bitcoin wallet and nothing else; the Bitcoin network stays strong! That is the beauty of cryptocurrency! Centralization in Proof-of-Work: 51% Attack Unfortunately for Bitcoin and other Proof-of-Work (PoW) cryptocurrencies, people figured out that if they pool their computing power together for the sake of mining, they can make money faster. I am all for working together, but when it comes to mining a cryptocurrency, only one person can mine a new block at a time; if you attempt to split the reward for mining a new block among multiple miners through the blockchain, you need some proof of their work on the blockchain, which leads to blockchain bloat that nobody wants. So, to effectively po Continue reading >>

First Impressions Of Ethereums Casperproof Of Stake(pos)

First Impressions Of Ethereums Casperproof Of Stake(pos)

Vitalik Buterin and Virgil Griffith have introduced a proof of stake-based finality system capable of overlaying an existing proof of work (PoW) blockchain. In their paper [1], entitled Casper the Friendly Finality Gadget, Buterin and Griffith explain that the first version of Casper (within Ethereum) could take on the form of a hybrid PoW/PoS system. The first available release of the alpha Casper Friendly Finality Gadget (FFG) testnet, built on pyethereum, achieves this. This hybrid PoW/PoS vision, albeit with only 14 listed nodes at the time of writing, can be observed on the following Ethereum Network Status Site [2]. Installing Casper FFG on Ubuntu 16.04LTS Thankfully, the process of installing Casper FFG on Ubuntu as documented here [3] is relatively straight forward. This succinct installation process is thanks to the docker approach provided by Karl Floersch [4]. Participating in the validation PoSprocess At present, my most significant hurdle to running a validating Casper FFG testnet node is not brought about by the installation process or commands. It is brought about by the fact that a validating Casper FFG node, on the testnet, must provide a minimum deposit of 1, 500 Casper FFG testnet ETH in order to participate in the validation process. As we mentioned previously, Casper FFG is a hybrid PoW/PoS system and therefore the Casper FFG node is able to be run in mining mode. The following gist contains a list of commands for mining Casper FFG testnet ETH using Ubuntu 16.04LTS. The following gist contains a list of commands for checking Casper FFG testnet ETH account balance (during/after mining). Of course, whilst mining is an option, it would be ideal if participants willing to try out the alpha Casper FFG testnet could have immediate access to the required Continue reading >>

Ethereums Proof-of-stake May Be A Profitable Venture For Currentholders

Ethereums Proof-of-stake May Be A Profitable Venture For Currentholders

Co-founder & CEO of Apteo: Researching machine learning techniques to improve investing, especially in stocks, options, and soon, crypto. Come join us! Ethereums Proof-of-Stake May Be A Profitable Venture For CurrentHolders In a recent post , I outlined how the use of real-world resources tie cryptocurrencies like Bitcoin and Ether back to real world monetary value. Today, Im going to flip the script and talk about Ethereums plan to eliminate the need for heavy duty computing power, and why that may not be such a bad thing from a financial perspective. If youre familiar with the idea of cryptocurrency mining, you know that in order to keep a blockchain running smoothly, it takes a lot of computing power to verify new transactions. This process, known as mining, is currently used by both Bitcoin and Ethereum to maintain their blockchains. One of the main issues with mining is the vast amount of electricity that it uses. Vitalik Buterin, the creator of Ethereum, has estimated that the amount of electricity needed to mine Bitcoin and Ethereum runs up a $1M daily bill ( ). Another study recently showed that the amount of electricity consumed by the Bitcoin mining network is comparable to the energy used by all of Ireland ( ). If things continue as-is, cryptos are going to be a big problem for the environment. Mining fills a big need providing consensus among network participants regarding the state of the world of historical and current transactions. Because miners solve complicated problems using transaction information and cryptography, what they do is referred to as proof-of-work. There are, however, other methods for getting a group of disparate participants to agree on transactions. The most popular of which is referred to as proof-of-stake. Instead of miners competin Continue reading >>

How Ethereum Moving To Proof Of Stake Can Possibly Increase Ethereum Price

How Ethereum Moving To Proof Of Stake Can Possibly Increase Ethereum Price

How Ethereum Moving to Proof of Stake Can Possibly Increase Ethereum Price Ethereum price can benefit from moving to proof of stake. Changes will happen from the way the currency is mined to the way the blocs are validated. Our article today will try to provide a simple and concise explanation of what will happen and most importantly, how it will reflect on Ethereum price. To understand how Ethereum price will react to this upgrade and why it might be a positive catalyst for Ethereum price, we need to understand the difference between Proof of stake and Proof of work. How Ethereum price can be impacted by the future Proof of State This infographic from Blockgeeks illustrates quite well the idea of how the two work and how they differ. We have also covered this difference as part of the Ethereum Metropolis upgrade . In fact, this Ethereum conversion from proof of work to proof of stake is a major component of Ethereums roadmap to better scalability. Basically, the difference between the two is that proof of stake removes the requirement for miners to solve complicated algorithms in order to get rewarded. This reduces significantly the energy needed to mine each Ethereum coin . On the other hand, proof of stake requires miners to hold a certain amount of Ethereum or whatever coin they are mining in a way similar to Dashs Masternodes . Important: This along with the info-graphic above should clarify how Ethereum miners will not be put out of work as expressed in some articles. The process will be different and thats all. This is when things might get interesting for Ethereum price because now miners are required to hold a certain amount of Ethereum called a minimum stake to be able to get their transaction fee. What this will do is decrease the amount of Ethereum availabl Continue reading >>

Proof Of Stake Faq Ethereum/wiki Wiki Github

Proof Of Stake Faq Ethereum/wiki Wiki Github

See A Proof of Stake Design Philosophy for a more long-form argument. No need to consume large quantities of electricity in order to secure a blockchain (eg. it's estimated that both Bitcoin and Ethereum burn over $1 million worth of electricity and hardware costs per day as part of their consensus mechanism). Because of the lack of high electricity consumption, there is not as much need to issue as many new coins in order to motivate participants to keep participating in the network. It may theoretically even be possible to have negative net issuance, where a portion of transaction fees is "burned" and so the supply goes down over time. Proof of stake opens the door to a wider array of techniques that use game-theoretic mechanism design in order to better discourage centralized cartels from forming and, if they do form, from acting in ways that are harmful to the network (eg. like selfish mining in proof of work). Reduced centralization risks, as economies of scale are much less of an issue. $10 million of coins will get you exactly 10 times higher returns than $1 million of coins, without any additional disproportionate gains because at the higher level you can afford better mass-production equipment. Ability to use economic penalties to make various forms of 51% attacks vastly more expensive to carry out than proof of work - to paraphrase Vlad Zamfir, "it's as though your ASIC farm burned down if you participated in a 51% attack". How does proof of stake fit into traditional Byzantine fault tolerance research? There are several fundamental results from Byzantine fault tolerance research that apply to all consensus algorithms, including traditional consensus algorithms like PBFT but also any proof of stake algorithm and, with the appropriate mathematical modeling, pr Continue reading >>

Ethereum Price: What The Casper Update Means For Ethereum

Ethereum Price: What The Casper Update Means For Ethereum

Ethereum price: What the Casper update means for Ethereum Ethereum is on a charge right now after the first testnet of a major update was released. Here's what it means. Ethereum , while many believe is the future of the internet, in its current form still has problems handling capacity, relies on miners for proof of work and is quickly becoming more expensive for transactions. List of exchanges that allow you to buy Ethereum In December, the increasingly popular Ethereum-based game CryptoKitties brought in so much traffic that it completely overwhelmed the Ethereum network for 24 hours. There are several improvements on the roadmap to eventually bring Ethereum to the point where it can handle as many transactions per second as the Visa network, decentralised and at a cheaper price. The first of these is known as the Casper update, and its initial test network was just released, which is why Ethereum's price has been going through the roof. Casper, once it's integrated will turn Ethereum from a Proof of Work platform into a Proof of Stake, which will make everything much faster and cheaper as it continues to grow. Currently, the Proof of Work system Ethereum uses means miners are needed to solve complex algorithms to support consensus and keep the network running. In the Proof of Stake world, these miners will be replaced by "Stakers". These Stakers will stake their coins in special wallets, and be paid dividends from network fees based on how much ETH they stake. Stakers will need to have a minimum amount of ETH before they can take part in the consensus. It's not sure yet how much ETH will be needed, however Ethereum founder Vitalik Buterin has said it could be around 1,000 to begin with. The biggest change which will come from this is that it will make Ethereum mine Continue reading >>

Omg Network Validation

Omg Network Validation

Im out of forest metaphors, so lets just say Gremlin here is running a validator node. In the previous staking post , we addressed the knowns and unknowns regarding staking returns on the OMG network. Today we will discuss some of the more technical aspects of how staking will work. Shamelessly repeating myself, I will stipulate that the network is still under construction, so there are elements that have yet to be fully formed. As always we want to give you information that is definitive and correct, so here again we will abstain from speculation and be clear about what is and isnt decided. Details below apply to the initial Honte implementation being deployed on Tendermint; not everything will hold true in the Plasma implementation (more about our multi-phase rollout here ). In some cases the different protocols will call for different approaches. The OMG network will use a Proof of Stake (PoS) system. Before we dive into the specific ways in which PoS will be employed by the OMG network, a very brief overview of basic concepts: Unlike Proof of Work (PoW), in which a miner (validator) has to expend an enormous amount of computing power in order to mine a block, PoS requires a validator to stake their tokens in order to validate. Essentially, validators put their tokens in a security deposit that is held in a smart contract. If they validate actively and honestly they are rewarded; if they behave dishonestly they lose tokens. The game theory concepts of Schelling points and Byzantine fault tolerance are useful when trying to wrap your head around why this works. Both systems are designed to make faulty behavior cost more than its worth: The brute computational strength needed to mine a block in PoW represents both a substantial investment in hardware and great energy Continue reading >>

Ethereums Proof-of-stake May Be A Profitable Venture For Currentholders

Ethereums Proof-of-stake May Be A Profitable Venture For Currentholders

Ethereums Proof-of-Stake May Be A Profitable Venture For CurrentHolders Co-founder & CEO of Apteo: We're using the AI to improve investing, come join us! In a recent post , I outlined how the use of real-world resources tie cryptocurrencies like Bitcoin and Ether back to real world monetary value. Today, Im going to flip the script and talk about Ethereums plan to eliminate the need for heavy duty computing power, and why that may not be such a bad thing from a financial perspective. If youre familiar with the idea of cryptocurrency mining, you know that in order to keep a blockchain running smoothly, it takes a lot of computing power to verify new transactions. This process, known as mining, is currently used by both Bitcoin and Ethereum to maintain their blockchains. One of the main issues with mining is the vast amount of electricity that it uses. Vitalik Buterin, the creator of Ethereum, has estimated that the amount of electricity needed to mine Bitcoin and Ethereum runs up a $1M daily bill ( ). Another study recently showed that the amount of electricity consumed by the Bitcoin mining network is comparable to the energy used by all of Ireland ( ). If things continue as-is, cryptos are going to be a big problem for the environment. Mining fills a big need providing consensus among network participants regarding the state of the world of historical and current transactions. Because miners solve complicated problems using transaction information and cryptography, what they do is referred to as proof-of-work. There are, however, other methods for getting a group of disparate participants to agree on transactions. The most popular of which is referred to as proof-of-stake. Instead of miners competing to solve really tough math problems, the network will instead use a Continue reading >>

Top 10 Proof Of Stake Cryptocurrencies In 2018

Top 10 Proof Of Stake Cryptocurrencies In 2018

Proof of Stake is a concept developed by early cryptocurrency innovators such as Hal Finney and Adam Back. It's a newer (and some think better) method of achieving consensus among distributed parties in a cryptocurrency network. Staking is where coin holders put their coins in a PoS compatible cryptocurrency wallet. It is equal to or has the same effects as mining in Proof of Work systems but the miners do not expend exhorbitant amounts of computing power and efforts, so it's considered an eco-friendly alternative. Instead of coins being minded, they are "minted" and distributed much in the same way. Other than saving holders electricity and the purchase of expensive mining equipment, PoS avoids centralization of network power in the hands of few individuals, companies, and mining conglomerates, which is one of the biggest problems of Bitcoin. Today, there are hundreds of cryptocurrencies using the PoS technique. Below are some of the best cryptocurrencies using PoS. Divi -- is the inventor of a novel 5-tiered masternode system, with the first level requiring investment of 1,000 DIVI. This means a masternode holder needs an investment of only $2,490 since the current price is $2.49 as at the time of this writing. Divi is also working a super-user-friendly wallet that geared for mass adoption. This is the type of cryptocurrency in which it's good to buy a masternode early. Plus, their masternode calculator shows 60-100% annual rewards. Digital Cash is one of the pioneers of the Proof of Stake algorithm and built on the core Bitcoin platform or system, but with additional privacy and quick transaction features such as PrivateSend and InstantSend. Holders of Dash can stake a minimum of 1,000 DASH and run a masternode to earn dividends in form of DASH. That requires an inv Continue reading >>

Putting A Value On Ether

Putting A Value On Ether

With the recent wholesale crash of the cryptocurrency market, many investors will be reevaluating their positions and considering the true value of Ether. Why is each Ethereum token worth $200, or for that matter why was it worth $400, and how could it possibly be worth over $1,000 as so many were claiming during the frenzied hysteria of May and June. This brief piece will look at some of the fundamental considerations of the Ethereum blockchain, which may go some way to helping you to decide on whether Ether is priced fairly, or whether it is still sitting within a giant cryptocurrency bubble. The current circulating supply of Ether at the time of publication is ~94 million. 5 Ether is minted roughly every 15 seconds (mining). However, an ice age is coming, whereby mining will become so difficult that it is no longer feasible, and Ether issuance through mining will fall to zero. Instead of mining, users will commit to staking instead (discussed further below). The Ether payout for this new consensus mechanism will have a much smaller payout, as the costs of staking are negligible compared to the costs of mining (electricity). As a result, it has been estimated that the inflation rate of Ether will be in the region of 0-3% when this new consensus mechanism called Proof of Stake comes into play in early 2018. Inflation may even be negative . When discussing demand, we are looking at clear reasons as to why an individual or institution would buy and hold Ether. Someone may wish to purchase Ether to participate in an ICO, but demand such as this is largely irrelevant as a significant proportion of Ether raised during an ICO will be sold off to pay for operating costs. The same applies to remittance markets, where the demand for Ether is quickly offset by its subsequent sa Continue reading >>

Ethereums Proof Of Stake Is 75% Complete

Ethereums Proof Of Stake Is 75% Complete

Quote from: bbc.reporter on April 24, 2017, 12:51:39 AM What will happen to the miners of Ethereum after the switch to proof of stake? I have asked this question before and I have received a lot of answers that say they will mine other coins. The real answer is the miners after supporting the ETH network will have been screwed over by the Ethereum Team. Anyone who suggests they will just mine other coins doesn't have a basic understanding of mining at all. As soon as all that mining power attempts to move to other coins, the difficulty level will sky rocket and mining the coin becomes unprofitable. In general the quantity of hashpower following a coin mirrors price. If price goes up making it more profitable to mine new hashrate comes in to support the coin. If price drops eventually miners start loosing money and hashrate drops. This creates an equilibrium between price and hashrate. This equilibrium means that in most cases coins already have a hashrate in proportion to the value of the coin. It's because of this balance that the hashrate of the ETH network has no where to go. 1. ETC won't go POS. In ETH, POS isn't simply POS, like what other projects have. But in ethereum, POS also means scaling and a shit ton of different projects and development. ETC devs aren't capable of providing this kind of development, therefore this is the reason they hardforked, removed the ice age and set the coin cap to 210-230mil tokens. They can barely copy some updates the Ethereum foundation does. But weren't even capable to copy the update to remove the blockchain bloat caused by the spamers ( they could implement it when they removed the ice age if they were capable ). 2. Nobody cares about PPC. If you want to succeed post bitcoin era in crypto scene, you gotta do so much more than Continue reading >>

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