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Ethereum Proof Of Stake Minimum

Beginner's Guide To Ethereum Casper Hardfork: What You Need To Know

Beginner's Guide To Ethereum Casper Hardfork: What You Need To Know

The Casper updates mission is straightforward, then: to shift ether from being a PoW coin to a Proof-of-Stake (PoS) coin . As opposed to the PoW consensus protocol, the PoS protocol achieves consensus through stakerssometimes referred to as minters, toowho stake their coins by locking them down in specialized wallets . With these stakers at work, mining will become redundant, meaning the Ethereum network post-Casper will rely on stakers and staking pools instead of miners for its operability. And, like miners, stakers will be rewarded for their service to the network. Minters will receive an annual dividend of ether (collected from network fees), so staking would be a lucrative endeavor for those with enough coins. Naturally, then, the more ETH you stake, the larger your annual dividends will be. For now, Ethereums developers havent arrived at a hard number for the amount of ETH that will be required to stake. What they have confirmed, though, is that the number will likely start out higher before gradually being brought considerably lower. For instance, Ethereum founder Vitalik Buterin has recently thrown around a guesstimate of needing approximately 1,000 ETH to be one of the networks inaugural stakers. He said that number could be dropped down to as low as 10 ETH over time. Whatever the number ends up being, users will still be able to band together and create staking pools, just like there are robust mining pools in the Bitcoin and Ethereum communities today. Youll simply pitch your desired amount of ether in, lock in down with your peers, and rake in the dividends together (to be shared proportionally, of course). Well, the Casper update is certainly a team effort, but its inarguable that top Ethereum researcher Vlad Zamfir has been at the vanguard of the updates 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 >>

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 >>

Ethereum Proof-of-stake: Vitalik Buterin Shares Casper Contract Code

Ethereum Proof-of-stake: Vitalik Buterin Shares Casper Contract Code

A sequence number mechanism on messages (needed to fully verify slashing conditions) Switching from checking ECDSA signatures to checking arbitrary validation code Aside from that, it's quite close to being done. Also, note that the Casper contract is only one of three parts, the other two being the validator daemon logic and the fork choice rule. Those are both in progress too, but not quite as advanced as the contract. So once the contract code is complete, only the daemon and fork choice rule remain. The validator daemon would be a program that runs off-chain (not on the blockchain, but on a users machine) that interacts with the Casper contract so a node knows when to send the proper messages (see here for more on prepare/commit messages) to validate a block. The fork choice rule will be a piece of code that every node is running in order to determine what exact conditions the canonical (longest) chain will be made under. This is to ensure that a node bets on the winning chain. If a node bets on a false (malicious) chain, that node (validator) loses its deposit. This is a very important aspect of securing a blockchain network, as it is where consensus is determined regarding which blockchain is the canonical chain. The question likely on everyones mind: how much ETH do I have to stake to offset the gas costs (transaction fees) of sending prepare/commit messages and make a profit? Buterin spoke about the minimum size of validator deposits, saying: This is a tricky issue. Here there is an implied minimum because you have to pay gas to prepare/commit, and so altogether it's not profitable unless you deposit at least 1000-4000 ETH. One possibility that we're thinking about is in later stages hardforking in a discount specifically for execution associated with this cont 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 >>

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 >>

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 >>

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 >>

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 >>

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 >>

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 >>

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 >>

Proof Of Work Vs Proof Of Stake: Basic Mining Guide

Proof Of Work Vs Proof Of Stake: Basic Mining Guide

Proof of Work vs Proof of Stake: Basic Mining Guide Angel Investors, Startups & Blockchain developers... Recently you might have heard about the idea to move from an Ethereum consensus based on the Proof of Work (PoW) system to one based on the so-called Proof of Stake. In this article, I will explain to you the main differences between Proof of Work vs Proof of Stake and I will provide you a definition of mining, or the process new digital currencies are released through the network. Also, what will change regarding mining techniques if the Ethereum community decides to do the transition from work to stake? This article wants to be a basic guide to understanding the problem above. First of all, lets start with basic definitions. Proof of work is a protocol that has the main goal of deterring cyber-attacks such as a distributed denial-of-service attack (DDoS) which has the purpose of exhausting the resources of a computer system by sending multiple fake requests. The Proof of work concept existed even before bitcoin , but Satoshi Nakamoto applied this technique to his/her we still dont know who Nakamoto really is digital currency revolutionizing the way traditional transactions are set. In fact, PoW idea was originally published by Cynthia Dwork and Moni Naor back in 1993, but the term proof of work was coined by Markus Jakobsson and Ari Juels in a document published in 1999. But, returning to date, Proof of work is maybe the biggest idea behind the Nakamotos Bitcoin white paper published back in 2008 because it allows trustless and distributed consensus. Whats trustless and distributed consensus? A trustless and distributed consensus system means that if you want to send and/or receive money from someone you dont need to trust in third-party services. When you use tra 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 >>

Ethereum Price Analysis - Immediate Upside Likely

Ethereum Price Analysis - Immediate Upside Likely

Ethereum Price Analysis - Immediate upside likely Josh Olszewicz , 28 Sep 2017 - Ethereum , Opinion , Price Analysis Ethereum ( ETH ) now has a US$29 billion market capitalization , second only to Bitcoins US$69 billion. ETH is also the second highest trading digital cryptocurrency or asset by volume, below Bitcoin and above Ripple . ETH has had a wild ride this month, dropping from all-time highs around US$400 to US$200. The cryptocurrency has since rallied and currently trades around US$300. Unlike Bitcoin, Ethereum is not deflationary and currently has no maximum total. In order to slow inflationary pressures, the Ethereum developers have programmed specific changes in difficulty, while trying to avoid any major disruption in the network itself. With the upcoming Metropolis hard fork, Ethereum will begin switching from a pure Proof of Work consensus protocol to a hybrid Proof of Work and Proof of Stake protocol, with Casper Stage 1 . At the same time, there have been changes to the difficulty adjustment scheme so that each difficulty increase occurs exponentially. As difficulty has increased, so have block times. Blocks are currently generated in just under 30 seconds. There have also been proposed changes to decrease the block reward, from 5 ETH to 3 ETH. Mining will eventually become impossible, which is the desired result for the Ethereum development team, resulting in a pure PoS consensus protocol. Vitalik has said that an implied minimum of 1000-4000 ETH will be required to earn stake rewards when PoS is fully implemented, which is comparable to the cost of a DASH Masternode. This is due to Gas transaction costs, which may change in the future. However, PoS rewards can also be acquired through a staking pool. The difficulty and block time increases mean that le Continue reading >>

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