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Ethereum Uncle Reward

Uncle Rate And Transaction Fee Analysis

Uncle Rate And Transaction Fee Analysis

One of the important indicators of how much load the Ethereum blockchain can safely handle is how the uncle rate responds to the gas usage of a transaction. In all blockchains of the Satoshian proof-of-work variety, any block that is published has the risk of howbecoming a stale, ie. not being part of the main chain, because another miner published a competing block before the recently published block reached them, leading to a situation where there is a race between two blocks and so one of the two will necessarily be left behind. One important fact is that the more transactions a block contains (or the more gas a block uses), the longer it will take to propagate through the network. In the Bitcoin network, one seminal study on this was Decker and Wattenhofer (2013) , which found that the average propagation time of a block was about 2 seconds plus another 0.08 seconds per kilobyte in the block (ie. a 1 MB block would take ~82 seconds). A more recent Bitcoin Unlimited study showed that this has since reduced to ~0.008 seconds per kilobyte due to transaction propagation technology improvements. We can also see that if a block takes longer to propagate, the chance that it will become a stale is higher; at a block time of 600 seconds, a propagation time increase of 1 second should correspond to an increased 1/600 chance of being left behind. In Ethereum, we can make a similar analysis, except that thanks to Ethereums uncle mechanic we have very solid data to analyze from. Stale blocks in Ethereum can be re-included into the chain as uncles, where they receive up to 75% of their original block reward. This mechanic was originally introduced to reduce centralization pressures, by reducing the advantage that well-connected miners have over poorly connected miners, but it al Continue reading >>

Understanding Byzantium & What It Represents To The Ethereum Network

Understanding Byzantium & What It Represents To The Ethereum Network

Today, at 1:22AM ET, Byzantium was activated on the Ethereum Network. Byzantium is the first version of Metropolis, Ethereums second major update. Given the breadth of changes proposed by Metropolis, the update was split into two distinct hard forks, Byzantium and Constantinople. A hard fork requires all participants of the network to update the software that they use to interact with the Ethereum blockchain. If a percentage of these participants refuses to update, two Blockchains are created and the network is split. Thankfully, as of 11:30AM ET, the Ethereum blockchain remains unified, and the majority of the network is using the update. Although activation appears to have been successful, there still seems to be some confusion as to what Byzantium represents. Below we will attempt to explain this update, and give our perspective on what it represents to the Ethereum Network. The main goal of the Byzantium update is to remove inefficiencies identified in the current version, incorporate improvements identified since the release of Homestead, and lay the foundational infrastructure for major projects currently being researched by the core development team. The update has been highly anticipated as it incorporates multiple Ethereum Improvement Proposals (EIPs) that have been developed and tested following the release of Homestead, Ethereums current version. Some of the changes being introduced by Byzantium include: 1) Instituting a Blockchain difficulty delay and a reduction in block rewards (EIP 649) Since the launch of the Ethereum Network, it was clear to the core development team that, for Ethereum to truly scale, it would have to change its consensus mechanism from Proof of Work to Proof of Stake. Because Ethereum has thousands of nodes that reach consensus via Pr Continue reading >>

What Are Ethereum Uncles?

What Are Ethereum Uncles?

In Ethereum, we often come across some very strange terms. For example, there is often a discussion about uncles, and how they impact the overall blockchain. Very few people seem to be aware of what these uncles are and represent. It is interesting to see incorrect network blocks still lead to some form of a reward. Letsexplore this uncle concept a bit further. Ethereum has Many Uncles and They all Matter These havenothing to do with family ties in the traditional sense. Instead, an uncle is a referred to as a network block which would normally be considered an orphan. Bitcoin users are well aware of how some blocks are orphaned because they were mined just after someone found the correct block header. Uncles work in a similar way, but there is a major difference. Miners on the Ethereum network are incentivized to include a number of uncles every time a block is mined. This may sound very strange at first, as it allows orphaned blocks to still yield a reward for miners. This is another example of how Ethereum is very different from Bitcoin. In Bitcoin mining, an uncle would yield nothing. Some people may wonder why the Ethereum network is set up in such a way they would incentivize miners to include uncles. There are two main reasons for this. First of all, it decreases decentralization in Ethereum mining. Like it or not, but cryptocurrency mining is often a very centralized activity. Even though there are many different mining pools to choose from, centralization is still present Rewarding miners for producing uncles is an interesting incentive. Not everyone wants to mine at a large pool, and this move effectively promotes solo mining to a certain degree. It is also an incentive to join smaller mining pools, as uncles will still yield some form of reward. Any miner wh Continue reading >>

Uncle Mining In Ethereum

Uncle Mining In Ethereum

Tristan Winters September 17, 2016 6:54 AM Bitcoin and Ethereum are similar in many key respects; they both seek to innovate and create something with unique utility. However, when it comes to abandoned blocks, this is where Bitcoin and Ethereum differ. Ethereum could be considered a descendant of Bitcoin. Theyre similar in many key respects; they both seek to innovate and create something with unique utility. However, when it comes to abandoned blocks, this is where Bitcoin and Ethereum differ. With the Bitcoin protocol, the longest chain is considered the absolute truth. If a block is not part of the longest chain then it is orphaned (abandoned). An orphaned block is a block that is the same size as the correct blockbut is not part of the longest chain. This could occur if the mathematical equation to achieve that block happened just slightly after the other accepted block, and it did not propagate through the network fast enough to be included in the longest chain. The miner responsible for that orphaned block then loses the reward associated with mining, when it otherwise, would have been a valid block. GHOST and Uncles - Heavier vs. Longer Chains Ethereums GHOST protocol treats orphaned blocks differently by giving them value. Orphaned blocks in Ethereum are called uncles and they can contribute to the security of the main chain. Relatively speaking, Bitcoin has a long block time. It takes an average of around 10 minutes (give or take) to achieve a single confirmation on the Bitcoin blockchain. Statistically , a confirmation inside ten minutes will occur about 63% of the time. Since the inception of Bitcoin, a large body of research about blockchain technology has developed. This research demonstrates that faster blocks are indeed possible, which could be desirabl Continue reading >>

What Is Ethereum? A Comprehensive Explanation - Coin Bureau

What Is Ethereum? A Comprehensive Explanation - Coin Bureau

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

Uncle Mining, An Ethereum Consensus Protocolflaw

Uncle Mining, An Ethereum Consensus Protocolflaw

Uncle Mining, an Ethereum Consensus ProtocolFlaw A year ago I was hired by Eth Dev Ltd through Coinspect to perform a security audit on the Ethereum design. One of our findings was that the uncle reward strategy in Ethereum was weird, and could lead to miners abusing the uncle rewards to almost triple the money supply. We discovered this problem because I had been working on the same problem for a long time, and posting in cryptocurrency mailing lists and in this blog about a variation of Nakamoto consensus protocol called DECOR+ , that is based on sharing block rewards between competing blocks. At that time I explained the flaw and suggested to limit the number of uncles to prevent an unbounded money supply function. I assumed the Ethereum core team would pick the DECOR+ protocol sooner or later, but Ethereum has now gone through several programmed hard-forks, and the problem still remains. Last week, and the night before a presentation of the RSK (a.k. Rootstock) smart-contract platform, I decided to explore the problem a little more, and I found to my surprise that the uncle mining strategy theoretically works in Ethereum at very low thresholds, and therefore the current Ethereum consensus protocol is certainly not incentive compatible. Uncle mining strategy consist of forcing you own blocks into uncles (blocks not in the best chain) in order to earn uncle rewards while preventing your blocks from contributing to the block difficulty adjustments. Uncle mining is a greedy strategy (or even it can be considered dishonest), as the greedy miners get monetary compensations while providing less of the expected service to the network: uncle mining does contribute to securing the network due to GHOST weighting, but does not contribute to increasing the network transaction p Continue reading >>

What Are Mining Rewards In Ethereum?

What Are Mining Rewards In Ethereum?

Mining Ether will start with the release of the Frontier platform. The Olympics test beforehand had no value attributed to the Ether which was mined and all balances at the Ether launch were set back to the close of the Fundraising so even if you had transferred our Ether on the testnet after contributing to your fundraise you will keep the Ether on the launch of the Frontier platform. The proof of work in Ethereum is run through Ethash . The successful PoW miner will receive a static block reward that is equal to 5 Ether. The successful miner will also receive all the gas in fees that it generates from the transactions in the block that it verifies. As time goes on and the amount of Ether created grows it is expected that gas rewards will take the lions share of mining rewards. The miner will also receive an award of 1/32 per Uncle block included. Uncles are stale blocks with parents that are a maximum of six blocks back from the present block. Valid Uncle blocks are rewarded to halt network lag (time to propagate a valid block to the whole network). Uncles included in a block receive 7/8 of the static block reward or 4.375 Ether- with a maximum of 2 Uncles allowed per block. After you have mined some ether you will need somewhere to store it and you can choose the best place here with our ethereum wallet comparison page. Continue reading >>

3 Answers - What Is The Incentive/principal Motivation To Mine Ethereum Instead Of Bitcoin? - Quora

3 Answers - What Is The Incentive/principal Motivation To Mine Ethereum Instead Of Bitcoin? - Quora

What is the incentive/principal motivation to mine ethereum instead of bitcoin? To understand the comparison, it's useful to understand the individual incentives of Bitcoin and Ethereum independently. Bitcoin miners secure the network by building blocks of validated transactions. A miner is currently rewarded 25BTC (halving to 12.5BTC soon) for successfully submitting a completed block to the network first, along with fees that accompanied the transactions in the block. Blocks are submitted to the network every ~10 minutes. The Bitcoin blockchain is secured with proof of work, using the SHA-256 algorithm. Due to the network difficultly and hardware available on the market, majority of mining is now done with expensive ASIC machines specialized for SHA-256. There isn't much opportunity for a home miner in Bitcoin anymore. Ethereum miners also secure the network in the same manner as Bitcoin by building blocks of validated transactions. A miner is currently rewarded 5 ETH for successfully submitting a completed block to the network first, along with fees (called gas) that accompanied the transactions and contracts in the block. If/when Ethereum starts to be used heavily by any service/app, gas rewards will increase as a higher payload requires more gas. Blocks are submitted to the network every ~10 seconds. Miners also have the opportunity to mine an Uncle block, an alternative block at the same height as your parent. These are just blocks that missed the successful submission to the network by a few calculations. Ethereum rewards miners for including Uncle blocks as it increases the decentralization incentive by still rewarding miners who aren't apart of big pools and produce stale blocks due to network propagation delays. A Uncle block is rewarded with 7/8th of the blo Continue reading >>

A Gentle Introduction To Ethereum

A Gentle Introduction To Ethereum

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

Uncle Block (cryptocurrency)

Uncle Block (cryptocurrency)

BREAKING DOWN 'Uncle Block (Cryptocurrency)' A blockchain is formed by a growing chain of blocks that store details of the various transactions occurring on the blockchain network. Miners continue to mine for the new blocks following the standard mining process implemented by the blockchain. The newly found block is appended to the blockchain after verification, and the miner who found this new block is entitled to the block reward . The block height , which indicates the length of the blockchain, increases after the addition of the new block. However, at times,two different miners may generate a block simultaneously. This happens due to the working mechanism of the blockchain, which may not accept the newly identified blocks into the blockchain instantaneously. Due to this delay, a situation arises where another miner solves for the same exact block and tries to add it to the network chain. It results in a temporary yet dubious state of the blockchain network, as the various nodes try to build a consensus about which of the newly identified blocks to continue with, and which one to be rejected. The rejected ones are those which have a relatively lower share of proof of work (POW) and constitute the uncle blocks, while the ones with the larger share join the blockchain and work as a normal block. The name uncle is based on the lines of a family tree. Consider the blockchain as a family tree, with accepted blocksthe genuine"parent-child" in the tree. However, an uncle, though very close to the parent, isnt really a part of the nuclear family, hence related but separate from the family, or blockchain. Unlike the Bitcoin network which does not reward for orphan blocks, Ethereum incentivizesuncle block miners. Valid uncle blocks are rewarded in order to neutralize the effe Continue reading >>

Ethereum & Uncles: How Family Makes Youstronger

Ethereum & Uncles: How Family Makes Youstronger

Ethereum & uncles: how family makes youstronger When reading about the blockchain ecosystem, you might come across very specific terms, some more surprising than others. And if you happen to dive into the Ethereum protocol, theres one particularly unusual piece of vocabulary: uncles. What in the world is an Ethereum uncle?! Lets get things clear right away: Ethereum uncles have nothing to do with family ties in the traditional sense. They also dont refer to an Ethereum side chain or an alternative fork. Instead, they represent an orphan block (mined just after a correct block was added to the main chain a valid block that arrives too late), that contributes to the security of the main chain although it is not considered the canonical truth for that particular chain height. Valid uncles are rewarded in order to neutralise the effect of network lag on the dispersion of mining rewards, thereby increasing security. Indeed, an incentive is paid to miners of the Ethereum network to encourage them to include uncles every time a block is mined. This aspect of the protocol constitutes one of the main differences between Ethereum and Bitcoin, where an uncle would yield nothing. In the Ethereum blockchain, the heaviest branch is selected as the truth (the stale descendants of the blocks ancestor -uncles- are added to the calculation of which block has the largest total proof of work backing it), whereas for Bitcoin the longest chain prevails. Figure 1: Bitcoin. The longest branch prevails: when B3 arrives, the B branch is chosen as the best chain, as it islonger Figure 2: Ethereum. The heaviest branch prevails: when B2 arrives, the B branch is chosen as the best chain, since the uncle C1 counts as another block in the branch weight. Here C1 arrived too late compared toB1. There a Continue reading >>

The Impact Of Uncle Rewards On Selfish Mining In Ethereum

The Impact Of Uncle Rewards On Selfish Mining In Ethereum

The Impact of Uncle Rewards on Selfish Mining in Ethereum @misc{1805.08832, author = {Fabian Ritz and Alf Zugenmaier}, title = {{T}he {I}mpact of {U}ncle {R}ewards on {S}elfish {M}ining in {E}thereum}, year = {2018}, eprint = {1805.08832}, note = {arXiv:1805.08832v1}} Many of today's crypto currencies use blockchains as decentralized ledgers and secure them with proof of work. In case of a fork of the chain, Bitcoin's rule for achieving consensus is selecting the longest chain and discarding the other chain as stale. It has been demonstrated that this consensus rule has a weakness against selfish mining in which the selfish miner exploits the variance in block generation by partially withholding blocks. In Ethereum, however, under certain conditions stale blocks don't have to be discarded but can be referenced from the main chain as uncle blocks yielding a partial reward. This concept limits the impact of network delays on the expected revenue for miners. But the concept also reduces the risk for a selfish miner to gain no rewards from withholding a freshly minted block. This paper uses a Monte Carlo simulation to quantify the effect of uncle blocks both to the profitability of selfish mining and the blockchain's security in Ethereum (ETH). A brief outlook about a recent Ethereum Classic (ETC) improvement proposal that weighs uncle blocks during the selection of the main chain will be given. Submitted 22 May 2018 to Cryptography and Security [ cs.CR ] Continue reading >>

Wtf Are Uncles And Why Do They Matter? : Ethereum

Wtf Are Uncles And Why Do They Matter? : 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 >>

Ethereum-classic (etc) Mining Pool Hub I Home

Ethereum-classic (etc) Mining Pool Hub I Home

- (1), (2) are recommended. Other miners are inefficient or not maintained any more. - (4), (5) are proxy programs that should be used with other (2), (6) programs. Here are detailed port, settings, download link This miner can mine other algo simultaneously, charges additional developer fee. Developer fee is 1% for Ethereum-only mining mode and 2% for dual mining mode. Every hour the miner mines for 36 or 72 seconds for developer. You can use ethman software to manage several rigs. - To mine ethereum-classic and Siacoin concurrently.You need to add "-allcoins 1" option due to claymore devfee DAG issue. EthDcrMiner64.exe -epool us-east.ethash-hub.miningpoolhub.com:20555 -ewal username.workername -eworker username.workername -esm 2 -epsw x -allpools 1 -allcoins 1 -dpool stratum+tcp://hub.miningpoolhub.com:20550 -dwal username.workername -dpsw x -dcoin sc - Mine ethash algo coins according to realtime profitability by pointing to 17020 port. You need to add "-allcoins 1" option due to claymore devfee DAG issue. EthDcrMiner64.exe -epoolus-east.ethash-hub.miningpoolhub.com:17020 -ewal username.workername -eworker username.workername -esm 2 -epsw x -allpools 1 -allcoins 1 -dpool stratum+tcp://hub.miningpoolhub.com:20550 -dwal username.workername -dpsw x -dcoin sc Continue reading >>

Orphan, Uncle & Genesis Blocks Explained

Orphan, Uncle & Genesis Blocks Explained

There are many different types of blocks in the cryptocurrency and blockchain technology space, but few people actually understand what they mean. This article is going to highlight and explain the different types of blocks in the cryptocurrency space that you definitely NEED to know. Orphan blocks are commonly associated with Bitcoin . They are valid blocks that meet all the necessary requirements needed to be added to the blockchain , but are however still rejected. Orphan blocks occur when two miners produce a block at similar times. This happens because the acceptance of a block into the blockchain by the nodes on a network does not happen instantaneously, therefore, another miner can in practise, solve for the same exact block. This causes a temporary split in the network as the nodes attempt to decide which block to continue building on. The block with the greater proof-of-work will be the one that the blockchain is continued to be built on-top of. The block with the smaller proof-of-work, is not chosen, and is referred to as the orphan block. An orphan block can also be produced if an attacker attempts to reverse a transaction . Stale blocks are often used interchangeably with orphan blocks because stale blocks are successfully mined blocks that were not included main chain. Therefore, if you see the word orphan block or stale block, be aware they mean very much the same thing. Uncle blocks are commonly associated with the Ethereum blockchain and are the equivalent of orphan blocks, but with a slight difference. Uncle blocks are still valid blocks that were mined, but then rejected. However, unlike with an orphan block where miners are not rewarded for mining them, miners are in fact rewarded for mining an uncle block. The rationale for this is twofold: Promote Continue reading >>

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