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 >>
In Ethereum, What Is An Uncle Block?
Why does Ethereum take this approach, instead of having a single chain of blocks back to the genesis block? If you mine a block, and it only gets included as an uncle, how much of the original reward do you get? How long after the uncle is created is it allowed to be included into a block? The motivation is to include stale blocks into the chain, so that the blockchain can have faster confirmation times. I haven't gone through it all, but the bulk of the reasoning for using "uncle" blocks seems to be laid out here . StephenM347 Sep 3 '15 at 17:31 An uncle is a block that in bitcoin would be considered an orphan because its not on the longest chain (it's an alternative block at the same height as your parent). Ethereum incentivizes miners to include a list of uncles when they mine a block. This has two main effects: 1) It decreases centralization incentive by still rewarding miners that produce stale or orphaned blocks on account of them not being part of a big pool and hence hearing about blocks later (due to network propagation delays) 2) It increases the security of the chain by augmenting the amount of work on the main chain by that done in the uncles (so no work, or at least much less work, is wasted on stale blocks) That being said, uncles introduce additional economic complexity that I'm not sure is well understood (like incentives to mine empty uncles) Continue reading >>
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 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 >>
Eli5 - What's An 'uncle' In Ethereum Mining
Think about it in terms of a family tree. An uncle is very close to being your Dad, but you would be different had you been born from the genes of your uncle. In that case, then your Dad would be your Uncle. Your family tree is like the blockchain. You and your Dad are like "correct" blocks. Uncles are like blocks that were very close to being the "correct" next block in the blockchain, but are not because they were beat to the punch by your Dad. That is why they are uncles and not blocks and constitute a fork in the blockchain, and are thus not valid. Cousins are even more useless in this context. Although, I believe Ethash rewards uncles, correct? But not cousins? Continue reading >>
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 >>
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 >>
Consensus - What Is An Uncle/ommer Block? - Ethereum Stack Exchange
The Ethereum blockchain is described as containing "ommer" blocks, usually called "uncle" blocks by the general public. What is an ommer/uncle block, and why are they needed? The term "ommer" is a gender-neutral alternative to aunt / uncle. See nonbinary.org/wiki/Gender_neutral_language#Aunt.2FUncle Pi Delport Apr 14 '16 at 14:00 Uncle: a child of a parent of a parent of a block that is not the parent, or more generally a child of an ancestor that is not an ancestor. If A is an uncle of B, B is a nephew of A. To help reward miners for when duplicate block solutions are found because of the shorter block times of Ethereum (compared to other cryptocurrency). An uncle is a smaller reward than a full block. (And if they are submitted later than the next block, the reward rapidly diminishes, ending at zero after seven blocks later.) Uncles are orphaned blocks that contribute to the security of the main chain, but are not considered the canonical "truth" for that particular chain height. Due to advances in blockchain research, it was shown that significantly lower block times were possible and perhaps beneficial given the current connectivity of the internet. One of the potential risks of a low block time is a higher rate of orphaned blocks (competing mined blocks that do not make it into the main chain). To counter this, a GHOST protocol is used which pays for these valid blocks, adding to the security of the main chain. Instead of the main chain being "longest", it is instead "heaviest". Continue reading >>
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 >>
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 >>