Connect with us

Economy

What will happen to miners after the big Ethereum update?

Published

on

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.

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?

See also  An analyst who has achieved high Bitcoin performance notes that Bitcoin could drop 10% and pave the way for altcoins, with a focus on gaming coins and the metaverse.

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.

See also  ISP with a discount of 22.2 cents on diesel and 26.3 cents on gasoline - News

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.”

See also  Boring company Musk has received permission to build a tunnel in Florida

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

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy

Everything has been delivered. 10 Bugatti Centodieci are already in the hands of the owners

Published

on

Everything has been delivered.  10 Bugatti Centodieci are already in the hands of the owners

OAll Bugatti Centodieci have been delivered, the Molsheim-based brand said on Monday. Cristiano Ronaldo received the number 07 in October this year. and Bugatti has now revealed that the latest unit – #10 – is already in the possession of its owner.

“The Centodieci combines all the values ​​of the Bugatti brand in an extraordinary package: rarity, innovation, heritage, craftsmanship and unrivaled performance. The production batch of 10 units was so in demand by our customers that it was sold before the Centodieci. was even officially presented,” said Christophe Piochon, president of Bugatti.

This latest example is finished in Quartz White with carbon fiber trim on the bottom and matte grilles. The brake calipers are painted in Light Blue Sport, as is the logo on the rear that refers to the EB110, the iconic Bugatti model that inspired this Centodieci. Inside, the predominant color is also blue, as you can see in the images above.

This block is powered by the same block as the other nine instances. The 8.0-liter W16 with four turbines is capable of developing 1600 hp. In terms of performance, this allows the Centodieci to hit 100 km/h in just 2.4 seconds and reach a top speed of 380 km/h.

Recall that each unit costs the owners eight million euros before taxes.

Read also: We already know when the Bugatti Centodieci fell into the hands of Ronaldo.

Continue Reading

Economy

The first Dacia hybrid. “The cheapest hybrid family on the market”

Published

on

The first Dacia hybrid.  "The cheapest hybrid family on the market"

BUT Dacia revealed this Monday that the hybrid engine has been available since March on the Jogger, the Romanian brand’s model known to be available with a seven-seat variant.

The Jogger Hybrid 140, Dacia’s first hybrid, will hit dealerships in March, but customers can expect and order it as early as January.

The price has been revealed by Dacia and since it’s only available in the seven-seater SL Extreme, it starts at €28,800. The brand claims it is “the most affordable hybrid family car on the market.”

Available in six existing colors to celebrate the launch of this hybrid, there will be a slate gray version, as you can see in the images above.

Equipped with a 1.6 liter four-cylinder petrol engine with 90 hp, the Jogger is also powered by two electric motors (a 50 hp engine and a high-voltage starter-generator). The total power is 140 horsepower. The electric transmission is automatic, four-speed, connected to an internal combustion engine, and two speeds are connected to an electric motor. This combined technology was possible, according to Dacia, only due to the lack of clutch.

Combined with the energy recovery levels of the 1.2kWh (230V) battery pack and the efficiency of the automatic transmission, regenerative braking delivers all-electric traction on 80% of urban journeys and saves up to 40% of fuel compared to a combustion engine vehicle.

Read also: Dual-fuel Dacia Jogger Eco-G. We tried 5 seater and LPG…

Continue Reading

Economy

See how Tesla tests its electric Semi truck in the worst-case scenarios

Published

on

Tesla Semi camião elétrico testes

Tesla has finally been able to bring its long-awaited Semi to market. This electric truck promises to revolutionize transportation and bring all the unique characteristics of this type of electric vehicle to this class of vehicles.

Now that the first units have been delivered, there is hope that they will finally be mass-produced and reach more transport companies. With so many promises to be kept, a new video is now emerging showing Tesla testing its Semi truck under worst-case scenarios.


Tesla Semi is already on the market

Like all Tesla electric vehicles, Semi follows the same line of creating a unique design associated with a platform with the most modern technology available. The proof is in what was presented to the public and surprised most people.

To prove the quality of this new proposal, Tesla published in your LinkedIn account new video. In it, he reveals some of the testing he's done to determine the strength and quality of the Semi's design and its (potential) durability.

Tests to prove its durability

It has been revealed that the Tesla electric truck is subjected to numerous tests and its application in the worst scenarios that drivers may face. It doesn't stop at the ruggedness of the Semi's designs, but goes further and focuses on the motors and batteries themselves.

This is the proof that many have been waiting for to ensure that this new proposal is not limited to a lot of autonomy. Its resistance is great and will provide greater durability, further enhancing the Semi's value and performance.

See also  ISP with a discount of 22.2 cents on diesel and 26.3 cents on gasoline - News

high quality electric truck

Tesla has already showcased the Semi's quality with a video showing its truck driving roughly 500 miles on just one charge. The big news here is that he managed to make this long journey with a maximum load of about 37 tons.

Now Tesla remains to widely place the Semi on the market. At the moment, only a few companies have access to this new product, with a very long list of pending deliveries, who want to start mass-using this electric truck offering.

Continue Reading

Trending