Ethereum Not Having A Supply Cap Is Not Such A Big Deal
Bitcoin Development Should Not Hinge On Contributors' Identities Ethereum Not Having A Supply Cap Is Not Such A Big Deal Although the Ethereum ecosystem is attracting a lot of positive attention, some questions still linger. For example, there is no supply cap on the ETH tokens, which leads to constant inflation. Switching to proof-of-take would reduce that inflation, but there wouldnt be a concrete supply cap per se. This is one question a lot of investors should think about. Unlike Bitcoin , with its 21 million coin cap, Ethereum has no particular currency supply limit. That may seem after unusual, but in the world of cryptocurrency, that is not uncommon. At the same time, this brings up the question how the value of individual ETH tokens should be calculated. After all, with no fixed supply, these tokens may as well be worth next to zero. According to a Reddit post , the number of issued ETH is linked to the value of a single token. In a way, this means the more tokens are created, the less valuable they become. Such a principle exists in traditional finance as well when central banks print more money. In this case, however, that value is decided by the free market. Some people may wonder what would happen if a rogue developer would try and double the supply overnight. While it is unlikely this will happen, it is a genuine question. Without the majority of network miners approving this change, it will not go through. Moreover, new Ethereum clients would need to be developed to accommodate this change. Even though there is no fixed supply cap for Ethereum right now, there are certain limits. The number of coins added per year varies a bit and is currently roughly 20% of the supply cap. That number can go down, assuming there will be a block reward halving in the futu Continue reading >>
Ethereum Creator Wonders Whether His Currency Should Be Scarcer
Bloomberg the Company & Its Products Bloomberg Anywhere Remote LoginBloomberg Anywhere Login Bloomberg Terminal Demo Request Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Ethereum Creator Wonders Whether His Currency Should Be Scarcer In a rare interview, Vitalik Buterin frets over ether supply Notes voodoo economics of digital tokens with no limits Vitalik Buterin, the inventor of the ethereum blockchain, may have created too much of a good thing. The 23-year-oldhelped sell one of the first digital currencies in 2014 when he introduced ether to the public. Three years later hes witnessed scads of other digital currencies raise more than $3 billion in 2017 via so-called initial coin offerings. The sheer number of coins now being created has made him ponder the previously imponderable: limiting the supply of ether. Photographer: David Paul Morris/Bloomberg Im concerned a lot of these token models arent going to be sustainable,Buterin said in a rare interview last week at the Ethereum Developers Conference in Cancun, Mexico. So whats the problem? Theres a hard limit -- 21 million coins -- on the supply of bitcoin, the first successful cryptocurrency, that helps underpin its value. Buterin isnt mulling a cap like that, but hes intrigued by the idea of imposing fees on applications built atop ethereum. Those fees would destroy -- or burn, in Buterins parlance -- ether tokens over time. If the token is being burned, then you have an eco Continue reading >>
No Supply Limit? The Economics Ofethereum
Exploring my interests through research and exposition. Editor of Optimization. Enthusiast of the Future. No Supply Limit? The Economics ofEthereum The Ethereum whitepaper differs quite a bit from the few Ive read so far on other projects, and sticks out due to the minimal mentions of economics compared to the normally detailed descriptions for ICOs. After all, Ethereum was also launched via a token sale; however, it differs in intended purpose. Understanding the economics of supply and demand in a cryptocurrency brings not only the potential for financial reward, but also faith or loss of faith in the project. This article goes in-depth on participation incentives, below are examples of different token economics: Some tokens like Bitcoin are mined through intensive calculations and have a finite supplies. Some speculators are optimistic about holding onto such coins and view them as gold, seeing a finite supply and increasing demand as positive for upwards price movement. Others such as IOTA are pre-mined. Every IOTA in existence has already been released to the market, no more can be created. Still others have only released a percentage of their tokens, with the remaining supply being released over time. See Ripple. The danger here in some coins (this is not directed at Ripple) is a cashing-out by the development team by only releasing tokens for sale as the price increases, fueling speculation. Our subject of discussion, Ethereum, has no supply cap! Ethereum is built with the goal to become the platform for DApps ( source ). Such a platform hosts the ability to run smart contracts, lines of code that execute once certain conditions are met. The whitepaper details the three main applications on top of the ethereum platform: financial applications of contracts such as Continue reading >>
How To Participate Ethereum Token Crowdsale And Which Wallets Are Compatible?
How to participate Ethereum token crowdsale and which wallets are compatible? How to participate Ethereum token crowdsale and which wallets are compatible? Instructions for participating Ethereum token crowdsales To participate to an Ethereum token sale you need a wallet that is smart contract compatible. DO NOT PARTICIPATE TO TOKEN SALES DIRECTLY FROM ANY CRYPTOCURRENCY EXCHANGES. YOU NEED A TOKEN COMPATIBLE ETHEREUM WALLET. For the list of compatible wallets please see below. Transfer ether to a compatible wallte (see below) Send a deposit to token sale address with correct data and gas limit values The following wallets are known to be compatible with Ethereum tokens (ERC-20 standard): Please contact us [email protected] if you have updates to the token compatible wallet list. Do not use the following wallets to participate any token sale. First move your ETH to a compatible wallet in the above list: If you know any other wallets that are known to behave correctly with Ethereum ERC-20 tokens please contact us at [email protected] MyEtherWallet: Example how to participate to a token sale To participate an Ethereum token sale you need to fill your transaction with following details Address - this is given you on the crowdsalse deposit page. Data - this is your personal reference number and it changes for every transaction. Do not share this with others. If you leave data field out your transaction is rejected. You need to click Advanced options to see this. Gas limit: 250600 - gas tells that this is a smart contract transaction and is more expensive than normal Ether transfer. Note: Double check your the gas limit field value after filling Data field. MyEtherWallet may reset the gas value to an invalid number after inputting the data field. Amount Fill in the A Continue reading >>
Ethereum: Everything You Want To Know Aboutgas
Gas keeps Ethereum Blockchain alive, thanks to it we can transfer Ether and other Ethereum tokens such as: GameCredits (GAME), OmiseGo (OMG) or Golem (GNT), it also allows to smart contracts to do their job. In this blogpost Im going to explain: what is Gas? how is it used? and why is it so important for the future of Ethereum? Important: Dont be misled by the Token named GAS which is something completely different. Ethereum blockchain is run by nodes that keep the blockchain state but also calculate new blocks. New blocks are needed to change Blockchains state e.g. move Ethereum from one account to another. Calculation of the new block is made by miners, to cover their effort transaction sender must pay a fee. Transaction fee depends on complexity of transaction sender wants to make, if its a regular send Ether transaction or more complex one like create smart contract (smart contract a special kind of the blockchain account, that can not only keep Ether but also computer program with its state). Sending Ether from one account to the other costs 21,000 Gas. On the other hand creating smart contract which is responsible for handling OmiseGo Token costed 1,197,977 Gas. So the more complex transaction, the more Gas we need to pay for its execution on Blockchain. Main complexity factors are: operations performed by the smart contracts code e.g. arithmetical operations data that is stored on blockchain e.g. storing information in the smart contract or updating an amount of Ether on the account We know more or less what Gas is, but how much does it cost? The answer is as always it depends. Each transaction sender (e.g. person who is sending Ether) is defining price of Gas for created transaction (e.g. 1 Gas = 0.000000001 ETH). If the price is high enough, transaction will b Continue reading >>
What Is Gas? Gas & Transaction Fees | Myetherwallet Help & Support
When you hear gas, the person is either talking about: The total cost of a transaction (the "TX fee") is the Gas Limit * Gas Price. Typically, if someone just says "Gas", they are talking about the "Gas Limit". You can think of the gas limit like the amount of liters/gallons/units of gas for a car. You can think of the gas price as the cost of that liter/gallon/unit of gas. With a car, it's $2.50 (price) per gallon (unit). With Ethereum, it's 20 GWEI (price) per gas (unit). 21000 units of gas at 20 GWEI = 0.00042 ETH. Therefore, the total TX fee will be 0.00042 Ether. Sending tokens will typically take ~50000 gas to ~100000 gas, so the total TX fee increases to 0.001 ETH - 0.002 ETH. You can use our tool to calculate GWEI <-> WEI <-> USD here , which can be helpful when you want to know your TX fee in ETH, rather than GWEI. The gas limit is called the limit because it's the maximum amount of units of gas you are willing to spend on a transaction. This avoids situations where there is an error somewhere in the contract, and you spend 1 ETH....10 ETH....1000 ETH..... going in circles but arriving no where. However, the units of gas necessary for a transaction are already defined by how much code is executed on the blockchain. If you do not want to spend as much on gas, lowering the gas limit won't help much. You must include enough gas to cover the computational resources you use or your transaction will fail due to an Out of Gas Error. All unused gas is refunded to you at the end of a transaction. So if you go to MyEtherWallet, send 1 ETH to our donation address ( ? ), and use a gas limit of 400000 you will receive 400000 - 21000* back. However, if you were sending 1 ETH to a contract and your transaction to the contract fails (say, the Token Creation Period is already Continue reading >>
230 Million: Ethereum Classic Community Backs Limit On Total Tokens - Coindesk
230 Million: Ethereum Classic Community Backs Limit on Total Tokens The community of companies and startups supporting the ethereum classic blockchain is planning to put a cap on the total amount of tokens that willever be created by the protocol. In a new blog post released today, signatories from the network's development, infrastructure and investment ecosystem threw their support behind a plan to upgrade the network in the coming months. Notable signatories include startup IOHK, which is led by former ethereum CEO Charles Hoskinson, Digital Currency Group, and major mining pools including F2Pool. The plan for the "monetary policy" envisions a limit being implemented, with an eye to start releasing software clients this summer. "The new monetary policy sets a limit for the total [classic ether (ETC)]issuance. The block reward will be reduced by 20% at block number 5,000,000, and another 20% every 5,000,000 blocks thereafter. Uncle block rewards will also be reduced. Due to variations in the reward rate of ETC, we anticipate the total supply to be approximately 210 million ETC, not to exceed 230 million ETC." Activation of the upgrade could come as early as the fall, and should the upgrade be adopted by network supporters, the block reward decline will begin in December. If enacted, the development would mark a significant milestone for the project, which arose from a split in the ethereum communitylast year. Disclosure: CoinDesk is a subsidiary of Digital Currency Group. Continue reading >>
Mining - What Is The Total Supply Of Ether? - Ethereum Stack Exchange
In Bitcoin, the total supply is capped at 21 million BTC. Is the total supply of Ether capped? How much will be mined before the Proof of Stake (POS) transition, and how will POS affect the issuance model? I'm not sure anyone really knows the answer, as it hasn't been decided, AFAIK. Tjaden Hess Jan 25 '16 at 20:42 Thanks. Was afraid of that. Hope that gets decided soon - would vastly prefer a fixed money supply at time of Proof of Stake with mining paid for by transaction fees only. Matthew Light Jan 25 '16 at 21:02 To clarify, homestead and PoS start are not necessarily the same milestone. Makes things a little close, but in my mind that means these are not the same question. Jeff Coleman Jan 26 '16 at 5:39 60 million + 12 million + 18million = ~90million60 million - is the Pre-sale.12 million - is the dev fund, 0.2coins per 1 coin sold in the crowdsale.~18 million - 1 million coins mined per month for 18 months prior to going from POW to POS. Update #1: 91,018,773.78 (April 25, 2017). After a while, 15,626,576 ether won't represent much of the total ether available, making the system dis-inflationary (i.e., inflation perpetually trending towards 0 but never reaching it). is there inflation after all coins are mined? Patoshi Feb 2 '16 at 20:55 @duckx i dont think, because the value will be high and it will keep increasing hopefully niksmac Feb 3 '16 at 2:34 @NikhilM we've seen this story before: if it doesn't take much Ether to actually create a contract then absent other drivers for demand the value will plummet. The rallies are driven purely by the low float, which is great for perception, but one must look at the risk factors for both the economics and their associated investment. Cryptocurrencies make this difficult due to the need to own them as an asset thereby Continue reading >>
Guide To Ethereum: What Is Gas, Gas Limit And Gas Price?
Guide to Ethereum: What is Gas, Gas Limit and Gas Price? Smokescreen no more By Aziz, Founder of Master the Crypto No responses Home Ethereum Guide to Ethereum: What is Gas, Gas Limit and Gas Price? This article breaks down the concept of gas, gas limit and gas price, which is a central feature of the Ethereum (ETH) Blockchain and ecosystem. If youve performed a simple transfer of Ether (ETH) from one place to another or participated in an Initial Coin Offering (ICO) , then chances are youre exposed to the concept of gas in the Ethereum network. Understanding the mechanics of gas and the associated terms gas limit and gas price is a crucial element to executing your ETH transactions. But before delving into the details of gas, its important to have a basic understanding of Ethereum. (Read more: Coins, Tokens & Altcoins: Whats the Difference? ) Ethereum is a giant network consisting of a huge number of computers connected together. This large, interconnected web of computers is called the Ethereum Virtual Network (EVN) essentially a global, supercomputer where all transactions occurring in the Ethereum network are updated and recorded into each computer. Ether (ETH) is the native currency of the Ethereum blockchain and is used as the fuel for the network. ETH is not to be confused with Ethereum Classic ; the latter is a fork of the Ethereum Blockchain. Heres a guide to understanding forks, hard forks and soft forks . A revolutionary functionality of the Ethereum blockchain was the introduction of smart contracts. Smart contracts are any contracts that have been pre-programmed with a set of definitive rules and regulations that are self-executing, without the need of any intermediaries. Therefore, with any given inputs, there will be a known output. As they say: Heres si Continue reading >>
5 Answers - If Ethereum Has No Limit To The Number Of Tokens That Can Be Generated, Unlike Bitcoin, Why Is There Not More Fear Of Hyperinflation?
If Ethereum has no limit to the number of tokens that can be generated, unlike Bitcoin, why is there not more fear of hyperinflation? A short answer is because most investors aren't involved enough to even know this is a possibility. They trade blindly. A longer answer is that even though there is no cap (yet), the amount of ETH being produced is quite steady, not keeping up with the demands of the market. So even with no cap, the amount being produced does not keep up with what the market wants, raising the price. I just want to add to Quora User s perfectly rational and absolutely true answer, that in fact, there is fear of hyperinflation associated with Ethereum for precisely this reason. Ive seen it repeated many many times online, because although the reality might be that there are measures against it, people dont know about that fact, so they are worried, because they havent done their research this has nothing to do with crypto, but the government printing off dollars and low interest rates. Hyper-inflation is not only coming but guaranteed, when you look back. These are likely to explode in these economic environments, as people look for safety havens and assets which are not pegged to much. Consider the recent rally in BTC as threats of nuclear attacks was coming. That is just a small dose of what could be on the horizon. Hyperinflation would amplify it. Continue reading >>
Etc To Limit Token Supply, Become Store Of Value This December
ETC to Limit Token Supply, Become Store of Value This December Ethereum Classic has had a theoretically unlimited supply of tokens, with nearly 13 million created each year. However thats about to change this December, as Ethereum Classic implements a new policy to limit the supply of tokens. The goal is to make the asset a better store of value. ETC prices have exploded in the last few weeks in response. Join the Bitsonline Telegram channel to get the latest Bitcoin, cryptocurrency, and tech news updates: Ethereum, and by extension Ethereum Classic, was created with the idea that there should not be a maximum limit on the amount of tokens. This is in contrast to Bitcoin, which has a hard cap of 21 million. The idea behind the unlimited supply is that tokens would be used to pay for services from the network. Ethereums ether was created not as a currency, but as fuel that powers the network. An overly limited supply could make it impossible to pay the network to operate, which could cause it to fail.Too fewtokens, and the price would not be economical for real world use. An unlimited supply means that prices will always drop as more and more tokens are created and put on the market. Earlier this month, Vitalkin Buterin considered implementing various way to burn, or destroy ether, to control its supply. This means that whenever a certain type of transaction occurs on the network, a small amount of Ether would be permanently destroyed. Ethereum Classic, on the other hand, has a different solution to the problem. The solution Ethereum Classic will use is in its upcoming ECIP 1017 monetary policy. The rules stipulate that starting at block 5 million, or on December 12th, the block reward will drop from 5 to 4 ETC. This downward trend will continue until eventually the blo Continue reading >>
What Is Ether?
Ether is a necessary element a fuel for operating the distributed application platform Ethereum. It is a form of payment made by the clients of the platform to the machines executing the requested operations. To put it another way, ether is the incentive ensuring that developers write quality applications (wasteful code costs more), and that the network remains healthy (people are compensated for their contributed resources). If you just want to test the technology, you probably don't need real ether. Download the latest Wallet app and switch to the Test Network Check your ether presale balance safely here: The total supply of ether and its rate of issuance was decided by the donations gathered on the 2014 presale. The results were roughly: 60 million ether created to contributors of the presale 12 Million (20% of the above) were created to the development fund, most of it going to early contributors and developers and the remaining to the Ethereum Foundation 5 ethers are created every block (roughly 15 seconds) to the miner of the block 2-3 ethers are sometimes sent to another miner if they were also able to find a solution but his block wasn't included (called uncle/aunt reward) Note that after the Byzantium update is implemented, the mining and uncle reward is reduced to 3 ethers and 0.625-2.625 ethers, respectively. No. According to the terms agreed by all parties on the 2014 presale, issuance of ether is capped at 18 million ether per year (this number equals 25% of the initial supply). This means that while the absolute issuance is fixed, the relative inflation is decreased every year. In theory if this issuance was kept indefinitely then at some point the rate of new tokens created every year would reach the average amount lost yearly (by misuse, accidental key Continue reading >>
Ico 101: How To Participate In An Ico Made Withethereum
ICO 101: how to participate in an ICO made withEthereum Theres a lot of hype around cryptocurrencies and ICOs as it continues to grow exponentially every day, even experts couldnt predict where it is today. Quite a few of them seem attractive, but imagine I didnt know anything about cryptocurrency, wallets, and ethereum. I mean, nothing at all. I will participate in the ICO of a mobile MMORPG called Lordmancer II (their site is lordmancer2.io . My goal was to get familiar with the whole idea of an ICO, go through all the steps, and have some fun in the process. For the purpose of this article the exact ICO doesnt matter, the process will be the same for any. Lets take this article as a general tutorial. Let me remind you what an ICO is. The acronym stands for Initial Coin Offering, a mock-up of Initial Public Offering. Nowadays, any startup can issue its own currency, usually called tokens or coins, using blockchain technology. These tokens may be bought, sold, or exchanged for another cryptocurrency, such as Bitcoin, Ether, or for fiat (read: normal) currencies. The main goals for the issuer of the tokens or coins is to fund their project development, marketing, and help increase demand, which will then increase the value of the tokens. The final goal of the individuals who purchase tokens is to use them to exchange/buy/sell individual goods and items, or do what most people do and wait until their price has skyrocketed and then sell them for a HUGE PROFIT.Hopefully. There are various business models designed to make the tokens more valuable with time. As for Lordmancer II , the price for their tokens will continue to grow because there will be always be an increase in demand for tokens from their players, and theres a limited amount of tokens. Besides that, they also Continue reading >>
Looking For Confirmation Of Total Eth That Can Be Created : 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 >>
A Beginners Guide To Ethereumtokens
Before learning about Ethereum tokens, it is important to first understand the basics of Ethereum . Please see my beginners guide to Ethereum for those new to this concept entirely. Ethereum tokens are simply digital assets that are being built on top of the Ethereum blockchain. They benefit from Ethereums existing infrastructure instead of developers having to build an entirely new blockchain. They also strengthen the Ethereum ecosystem by driving demand for ether, the native currency of Ethereum, needed to power the smart contracts. This beginners guide should help those who are new to digital assets to understand Ethereum tokens at a high level and how they are different than Ethereum. Ethereum is a platform that can be used to create any arbitrary smart contract including smart contracts that represent digital assets called Ethereum tokens. This is similar to the App Store providing a platform for iOS apps with some apps issuing their own digital currencies that are used within the game or system. However, with Ethereum there is no centralized entity like Apple that controls what gets added to the App Store. Anyone can create a token on top of Ethereum. Ethereum tokens can represent anything from a physical object like gold ( Digix ) to a native currency used to pay transaction fees ( Golem ). In the future, tokens may even be used to represent financial instruments like stocks and bonds. The properties and functions of each token are entirely subject to its intended use. Tokens can have a fixed supply, constant inflation rate, or even a supply determined by a sophisticated monetary policy. Tokens can be used for a variety of purposes such as paying to access a network or for decentralized governance over an organization. Tokens are often issued to the public throu Continue reading >>