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What will happen to miners after the big Ethereum update?

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ether, ethereum

To create and distribute new cryptocurrencies Ethereum is currently based on an energy-intensive process called mining, and Bitcoin

As thousands of people around the world who help in this, known as miners, run millions of dollars of machines in a race to solve computing problems and earn rewards for Ether, the network’s native cryptocurrency.

But sometime next year, Ethereum will undergo a major update that will fundamentally change how the network works and how new currencies are created. Ethereum mining will be a thing of the past.

So where are all the miners going?

Approves

When the Bitcoin whitepaper was released in 2008, it borrowed the cryptographic concept as a way to make the decentralized network secure for sending money: working test

The Ethereum blockchain, released in 2015, uses the same consensus protocol. Generally speaking, it is a way to ensure that computers always agree on transactions and database status. This protects the network from attacks that can waste funds multiple times.

Although the proof of work is an algorithm, the Ethereum Foundation Explain that “mining is” work “itself. This is the process of adding valid blocks to the chain. ” This work to increase computing power consumes a lot of electricity, and environmental groups often criticize cryptocurrencies.

Ethereum developers are working on porting the Proof of Work (PoW) network consensus protocol to proof of participation (PoS), which requires much less electricity to operate, but allows transactions on a much larger scale.

This network, named Ethereum 2.0will maintain security at the expense of people lending their tokens. Attacks can be avoided as deposits of malicious or inept participants will be taken as collateral.

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According to ETH core developer Tim Beiko, when the current PoW chain “merges” with the new PoS chain and Ethereum 2.0 takes effect, which may happen before the end of the year, mining actually stops. “Miners should try to distance themselves before that,” he told Decrypt.

But where will they go next?

Merge

Michael Carter, Cryptocurrency Miner and YouTube Channel Host Bits be trippin ‘, does not foresee a sharp drop in production before the “merger”.

He looked at the numbers, calculating the profitability of mining Ethereum over the next few months using ten different scenarios – high price and high volume, high price and low volume, and so on. And although he is a supporter of the project, he is ready to allocate his mining resources if another currency becomes more profitable.

He is also in no hurry with this. Miners with significant cash flow can afford to hold Ether in the hope that the price will rise.

After the merger, he believes that agnostic miners have two simple choices. “At the moment it looks like it will be a mixture of Ethereum Classic and Ravencoin,” he said. ABOUT Ethereum ClassicWith a market value of $ 4.7 billion on June 22nd, it is a network that emerged from the Ethereum hard fork in 2016.

Ravencoin, which had a market value of $ 436 million on June 22nd and a sale price of $ 0.05, is the native token of the digital and tangible asset transmission network.

None of them are as well known and widely used as the Ethereum network. It does not matter. The important thing is that, like ETH, your tokens can be mined using GPU-powered rigs.

ASICs or Application-Specific Integrated Circuits are more powerful devices for miners, but Ethereum uses an algorithm that has most of the advantage.

Hence, GPU miners have a strategic exit. Meanwhile, according to Carter, ASIC miners have an even more difficult path ahead. “What’s going to be interesting is how many Ethereum ASICs everyone can lose,” he said. “They can’t go anywhere.”

Or how commented Reddit user: “They’ll be USELESS.”

a warning

The fact that Carter and the others will not leave the ship until Ethereum 2.0 arrives does not mean that all miners are happy with this change.

In July, the Ethereum network will undergo a major update that will change the order (and size) of payment for miners. London hard fork will include Ethereum Improvement Proposal (EIP) 1559that automates the amount of gas (read: fees) that blockchain users pay and then … burn.

ETH transaction fees will no longer go to miners, but will be turned into digital ash when sent to an address that no one can access. Thus, miners will receive the newly mined ether as a reward.

Although defenders EIP-1559 argues that this will benefit everyone, because a decrease in supply will lead to an increase in demand (and, in turn, the price of the currency), not all miners agree. Rival mining pools came to different conclusions: some supported, while others condemned the upgrade.

EIP-1559 kicks off an unofficial merge clock as it represents the point at which miners can start leaving the network. (After all, the network will stop mining in a few months anyway.) But they risk missing out on a big salary.

“If the miners leave before the merger, the hash rate will decrease and other validators will get more profit,” Beiko told Decrypt. In other words, the fewer people mining, the easier it will be for those who stay to get rewarded in ETH.

Given the scale of mining that must be distributed to keep the network secure, this does not necessarily lead to some risk.

“We need some miners before the merger, but there will be no risk to the security of the network if they come out slowly before that, ”Beiko said. “In reality, however, most mining farms have already paid for their infrastructure, so they have an incentive to mine to the last block since their fixed cost has already been used up.”

While it is possible that some mining groups with obsolete equipment will “come out” as the merger approaches, Will Foxley from Compass Mountain, said Decrypt:

“A lot of people think that with the advent of fusion, there really is a huge accumulation of energy for mining, because they want to get as much Ether as possible before the upgrade takes place, knowing that fusion will increase the price of the coin.”

Who is ready?

“Everyone knows Ethereum will move to proof of participation,” Carter said. But some have done more than others to prepare.

“The best pools I’ve seen … have been anticipating this event and have taken development seriously in recent years,” Foxley said. For example, F2Pool, the second largest mining pool for ETH, has already prepared a new Ethereum 2.0 validator pool.

Perhaps not coincidentally, F2Pool also backed EIP-1559 in January, pointing to a rise in the price of Ether over time, even with decreasing block rewards.

Also, “JK” from F2Pool, wrote“We’ve already learned an expensive lesson by not alliance with key users and developers in other industries. During the DAO hard fork, the lead developers and contributors consistently relied on the current version of Ethereum to help it evolve and grow to its current state. ” According to him, Ethereum Classic is developing more slowly.

They don’t want to be left behind again.

ABOUT SparkPool which controls nearly a quarter of Ethereum’s hash rate – meaning it is capable of mining one out of every four blocks – opposes EIP-1559, calling the update “wealth distribution” and “tyranny of the majority.”

According to Foxley, SparkPool is also “aggressively against” the merger. But he said, “I don’t think they can do much, and I think they know it.”

In fact, this is true, but not literally. According to Beiko, miners can simply fork Ethereum, which does not turn into proof of participation, and create a kind of “Ethereum Classic 2.”

SparkPool and others are likely to change over time – and the Ethereum protocol – or be left behind.

* Translated and edited with permission Decrypt.co

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Economy

Is your loan reviewed in October? Get ready. Installment increase can be up to 45%

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Is your loan reviewed in October?  Get ready.  Installment increase can be up to 45%

Euribor rates rose sharply in September and will severely penalize those whose mortgages are renegotiated next month. View simulations

October should be a month of pleasant surprises for most Portuguese. Most of them will receive 125 euros in state support to cope with the effects of inflation. Those with children under the age of 24 will receive 50 euros for each child. And pensioners will receive a supplement equivalent to 50% of their pension.

But October has other surprises to consider financially. These are not at all positive. For many, gas and electricity prices will rise. And the Portuguese with mortgages, whose contracts will be renegotiated next month, are in for the worst of the unpleasant surprises: their house down payment will increase significantly.

This is because the overview of the contracts of those with a home loan is based on the average of the respective Euribor for the previous month, which it uses as an index. And in September, both the three-month-old Euribor, and the six-month-old, and the 12-month-old Euribor behaved the same way: they grew a lot. This is, in fact, the first time that the effect of positive euribor rates will be felt. This leads to an increase in the payment in October, which may exceed 200 euros.

But the bad news doesn’t end there, as these values ​​are expected to continue rising in the coming months. This is because the Euribor rates are closely linked to the changes in interest rates made by the European Central Bank, and this Wednesday the body controlled by Christine Lagarde. gave an indication of a new increase in October, which may reach even 0.75 points.

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Increases from 95 to 200 euros

Contracts indexed to the six-month Euribor, which make up the largest share of home loans in Portugal, will for the first time feel the impact of the rate in positive territory, where it has remained since June 6. And this is the second review this year.

This means that for a loan of 150 thousand euros for 30 years with a spread of 1% and an average Euribor rate for September, the monthly payment will be 600.51 euros, which is 146.44 euros more than has been paid since the last loan review. . Corresponds to an increase of 32%.

The six-month average Euribor rose from 0.466% in July to 0.837% in August, and in September it stands at 1.596%. The six-month Euribor has been negative for six years and seven months (from November 6, 2015 to June 3, 2022).

installment in October

150 thousand euros, 30 years, spread 1%

Euribor 6 months

pays

454.07

go pay

600.51

Increase

146.44

Those who have contracts indexed to 12-month Euribor and who will experience an increase in interest rates for the first time in 2022 will experience a larger increase. Since the contract is renegotiated from year to year, its holder will have to pay plus 201.72 euros in installments at home when you have to deliver 651.16 euros to the bank. In the last 12 months I have paid 449.44 euros. Corresponds to a 45% increase.

After soaring to 0.005% on April 12, positive for the first time since February 5, 2016, the 12-month Euribor has been above 0% since April 21. Its average also rose from 0.992% in July to 1.249% in August. And in September, the average figure is already at the level of 2.33%.

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installment in October

150 thousand euros, 30 years, spread 1%

Euribor 12 months

pays

449.44

go pay

651.16

Increase

201.72

On the other hand, in contracts indexed to the three-month Euribor, the effect will be smaller, but closer to one hundred euros. The amount will rise to 561.96 euros, which is 95 euros more than in July. The increase corresponds to an increase of 21%.

This year, this is the third upward revision of this type of contract, they were paid another six euros in April and another 17 euros in July.

The three-month Euribor was negative between April 21, 2015 and July 13, 2015 (seven years and two months). The three-month average Euribor rose from 0.037% in July to 0.395% in August and currently stands at 1.011%.

installment in October

150 thousand euros, 30 years, spread 1%

Euribor 3 months

pays

466.10

go pay

561.96

Increase

95.86

Euribor began to rise more significantly since February 4, after the European Central Bank (ECB) admitted that it may raise key interest rates this year due to rising inflation in the eurozone, a trend that has accelerated with the start of Russia’s invasion of Ukraine.

Christine Lagarde thinks the ECB needs to act “whatever you can do” return “inflation to 2% in the medium term,” the ECB president stressed at an event in Frankfurt this Wednesday.

According to Lagarde, if the bank does not go for a new increase in interest rates, the consequences for the economy will be more serious than the increase in the cost of credit. “Our goal is not to slow down growth, our main goal is to ensure price stability. This is what the ECB needs to achieve,” he added.

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Economy

mango. If you want to buy this set, you must be on the waiting list.

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mango.  If you want to buy this set, you must be on the waiting list.

HAda is more elegant than the “set of twins”. With just two parts, you can create an image without spending a lot of money and get an elegant result. And we’re not the only ones who think so, at least given the virtual queue created for the Mango suit, one of the most coveted sets of the season.

Read also: I had no time! One of the most coveted dresses has arrived at Mango Outlet

Sweater and pencil skirt in chunky jersey with lozenges are perfect for any occasion. It reveals both a more practical side when worn with sneakers, and a more elegant side with high boots or ankle boots.

Read also: Follow fashion trends with these six pieces of clothing.

The two parts are part of the Committed collection. This means that they have been produced using fibers and/or sustainable manufacturing processes that help reduce environmental impact.

Both are available in XSS and XXL sizes. The sweater costs €35.99 and the skirt €29.99. Invoices made gives a total of 65.98 euros.

Check out the gallery above!

Read also: Start Saving Now For These 35 Cozy Things You’ll Want To Buy

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Economy

House fees will rise from 89 to 202 euros in October for contracts with Euribor.

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House fees will rise from 89 to 202 euros in October for contracts with Euribor.

An enterprise simulation shows that a client with a loan of 150 thousand euros, for a period of 30 years, indexed to Euribor for six months and with a “spread” (bank profit margin) of 1%, starts paying from October 600.20 euros, which 146 euros more than the last review in April.

In the case of a loan with the same conditions (amount and maturity), but indexed to a three-month Euribor, the client will pay 555.25 euros, which is 89.08 euros more than in July this year.

Finally, for loans indexed to the 12-month Euribor, the mortgage payment on the loan under the above conditions will be 651.41 euros, which is 202.10 euros more than in October last year.

These values ​​have been calculated using September averages of Euribor of 1.596% for six months, 1.011% for three months and 2.233% for 12 months, according to Deco.

Today, on the last day of September, the Euribor rates rose to three and six months and fell to 12 months compared to Thursday.

The six-month Euribor rate, most commonly used in Portugal for home loans and entering positive territory on June 6, rose to 1.809% today, up 0.009 points, after rising to 1.858% on Wednesday, the highest since January 2009. .

The 3-month Euribor, which hit positive territory for the first time since April 2015 on July 14, also edged higher today when it was set at 1.173%, climbing 0.013 points after rising to 1.228% on September 27, a new high. since January 2012.

On the other hand, in 12 months, Euribor fell today, for the third time since September 9, when it was set at 2.556% minus 0.022 points against 2.625% on September 27, a new high since February 2009.

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Euribor began to rise more significantly since February 4, after the European Central Bank (ECB) acknowledged that it may raise key interest rates this year due to rising inflation in the eurozone, a trend that has accelerated with the start of Russia’s invasion of Ukraine. 24 February.

On September 8, the ECB raised three key interest rates by 75 basis points, the second consecutive increase this year, as it raised three key interest rates by 50 basis points on July 21, for the first time in 11 years. the purpose of curbing inflation.

At the end of the last meeting, ECB President Christine Lagarde said that a historic 75 basis point hike in interest rates was not “the norm”, but stressed that the evaluation would be carried out from meeting to meeting.

Changes in Euribor interest rates are closely linked to increases or decreases in ECB key interest rates.

Three-, six- and 12-month Euribor rates were the lowest ever, respectively: -0.605% on December 14, 2021, -0.554% and -0.518% on December 20, 2021.

Euribor is set on the basis of the average rate at which a group of 57 Eurozone banks are willing to lend money to each other in the interbank market.

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