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Ethereum’s “Merge” is about to put every ether miner out of work

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Ethereum’s “Merge” is about to put every ether miner out of work
Ethereum’s “Merge” is about to put every ether miner out of work

Andre Malerba/Bloomberg via Getty Images

In a few weeks, Ethereum is slated to undergo the most significant change in its seven-year history. Until now, the Ethereum blockchain has been secured using a method called “proof-of-work,” which consumes more electricity than the entire nation of Belgium. Next month’s switch to a new method called “proof-of-stake” is expected to cut Ethereum’s energy consumption by a factor of 1,000.

The stakes are high. A botched transition could mean chaos for the many crypto projects built on top of Ethereum. A smooth transition would be the culmination of years of careful planning by Ethereum’s core developers. Over the last year, developers have repeatedly pushed back the date of “the Merge” to give themselves more time to prepare. They completed a final dress rehearsal on August 10, clearing the way to make the switch in mid-September.

The most immediate consequence of a successful Merge will be to put the world’s Ethereum miners out of work. Over the last seven years, thousands of people have bought high-end graphics cards to help maintain the Ethereum blockchain—and to earn newly created ether in the process. The new system for updating the Ethereum blockchain doesn’t require the same kind of beefy hardware—or the massive electricity bill that goes with it. So the price of used graphics cards might continue to fall as Ethereum miners exit the industry.

But the switch to proof-of-stake is much more than just an energy-saving measure—it’s a major overhaul of the Ethereum network. Ethereum founder Vitalik Buterin believes the Merge will lay the foundation for a series of future upgrades that will allow the network to handle a much larger volume of transactions in the coming years. But critics worry that the new scheme could cause the Ethereum network to become overly centralized—and hence vulnerable to government regulation.

From proof-of-work to proof-of-stake

At a high level of abstraction, here’s how any blockchain works: Someone on the network proposes a block containing a list of recent transactions. Then other network participants verify that the block follows the network’s rules. If a sufficient number of other network participants accept the block, it becomes the “official” next block in the chain. As long as most network participants are honest, users can have confidence that transactions accepted by a majority of the network won’t be removed or modified later.

The big challenge for any blockchain project is preventing a malicious party from creating many sock puppet accounts to “stuff the ballot box,” outvote the honest participants and thereby tamper with past transactions. Bitcoin’s pseudonymous founder Satoshi Nakamoto’s big insight—the one that made bitcoin possible—was that this problem could be solved using the principle of “one hash, one vote.” On the bitcoin network, whoever has the most computing power—specifically, the capacity to compute SHA-256 hashes—has the most influence over which blocks get added to the blockchain. As long as honest miners have more hash power than malicious miners, users can be confident in the integrity of the blockchain—and hence in the integrity of payments made using the bitcoin network. (Check out our in-depth bitcoin explainer for details on how this works.)

When Vitalik Buterin launched Ethereum in 2015, he used a variant of Nakamoto’s scheme. By that point, bitcoin mining was already dominated by specialized silicon optimized for computing huge numbers of SHA-256 hashes, locking ordinary bitcoiners out of the mining game. So Buterin developed a new mining algorithm designed to be “memory-hard”—and therefore difficult to accelerate with custom hardware. As a result, Ethereum mining is still largely performed using off-the-shelf graphics cards, allowing ordinary Ethereum users to participate.

But the economics of the two networks are fundamentally similar. As the values of bitcoin and ether have risen, it has become profitable for people to spend more and more money on mining hardware—and electricity—to generate new coins. While this has made the networks more secure, it has also meant that both networks consume astronomical amounts of electricity and hence drive more and more carbon emissions.

The bitcoin and Ethereum communities have responded to this issue very differently. Satoshi Nakamoto disappeared from public view in 2011. In his absence, bitcoin’s culture has become increasingly conservative. Many bitcoiners adamantly oppose changing bitcoin’s mining system, fearing that changes could open the door to centralization and ultimate government control. As a result, bitcoin is unlikely to move away from proof-of-work in the foreseeable future.

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Ethereum

Celsius Network Will Hold Its Final Asset Auction On This Date 

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Celsius Network Will Hold Its Final Asset Auction On This Date 
  • Celsius Network is set to hold its final asset auction on October 17, 2022 
  • FTX CEO Sam Bankman-Fried is reportedly mulling over buying Celsius Network assets next week.

A recent court filing filed by Celsius reveals that the embattled crypto lender platform will conduct its final bidding session on October 17, 2022.

Celsius Is All Set to Host Its Final Auction Event 

Celsius Network has revealed a new timeline for its final auction event. The crypto lender platform will now be conducting its final bidding session on October 17, 2022, at 4:00 PM ET, alongside an auction, if necessary, on October 20, at 10:00 Eastern time.

Per the court filing filed with the US bankruptcy court for Southern New York, a sale hearing will be held on November 11, 1:00 PM ET, before chief US bankruptcy Judge Glenn Martin via Zoom.

Celsius Network, a prominent crypto lender platform, landed itself in troubled waters in July when the firm announced its decision to halt its deposits and withdrawals on the platform, citing extreme market conditions. The platform has received heavy criticism from the entire crypto community, which further spiralled out of control when the firm announced a deficit of 2.8 billion on its balance sheet.

In addition to this, Alex Mahinsky, CEO of Celsius Network, has recently submitted his resignation to the board. Mahinsky had reportedly withdrawn $10 million in the weeks before the firm halted deposits and withdrawals on its platform.

The auction, which is scheduled to go live on October 17, is said to be attended by a large number of interested parties. The CEO of FTX crypto platform, Sam Bankman-Fried, is also reportedly interested in purchasing the remaining assets of Celsius Network.

Last week, FTX.US won the first round of the Voyager asset auction by proposing a winning bid of $1.4 billion.

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Money Flowing Out Of Crypto Funds Is 666M Less Than Previous Quarter Indicating Bearish Investors Are Already Out: Bloomberg

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Money Flowing Out Of Crypto Funds Is 666M Less Than Previous Quarter Indicating Bearish Investors Are Already Out: Bloomberg
  • According to data from Bloomberg, money flowing out of crypto exchange-traded funds has slowed down by 97% in Q3 compared to Q2. 
  • Investors pulled $17.6 million from crypto ETFs in Q3 in comparison to a record withdrawal of $683.4 million from the ETF in Q2.

The second quarter of 2022 saw record withdrawals from crypto exchange-traded funds with a withdrawal of $683.4 million, which affected the price of Bitcoin and other cryptocurrencies. Bitcoin’s price has seen a 60% decrease that quarter, posting a record low of $17,785 on June 17 according to data from Coingecko.

Money Flowing Out Of Crypto Funds Is 666M Less Than Previous Quarter Indicating Bearish Investors Are Already Out: Bloomberg 12

Bloomberg data reports that Q3 of 2022 saw much fewer sales, indicating that capitulation may have occurred and bearish investors are now already out of risky assets such as BTC, Ethereum, and others.

ETF Strategist at Strategas securities stated for Bloomberg:

“I wonder if the second quarter was the ‘get me out part of these funds,”

According to Sohn, the third quarter may have been where the “laggards” and investors who had been “keeping the faith mentality” are now out.

Markets have declined in recent months as central banks have increased interest rates to curb inflation.

Bitcoin Witnessed An Increase In Volume This Quarter Against GBP

Bitcoin recently witnessed increased trading volume against GBP as the fiat currencies showed weakness. Bitcoin trading volume recorded an all-time high on Sep 28, 2022, as the UK’s fiat currency was threatened.

Bitcoin has been outperforming other major currencies in the past week, with a positive increase of 6.3%. Will this outperformance continue to hold, and are investors getting “orange-pilled” on Bitcoin while losing faith in fiat currency? This is something we will continue monitoring and see how it unfolds.

Money Flowing Out Of Crypto Funds Is 666M Less Than Previous Quarter Indicating Bearish Investors Are Already Out: Bloomberg 13

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ETH, BNB & TAMA – The 6 Big Winners on the Crypto Market this Week

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ETH, BNB & TAMA – The 6 Big Winners on the Crypto Market this Week

Even though Ethereum led the market in past years, it has never stayed at the top ladder for a long time. The high volatility property of cryptocurrencies was more evident in 2018, with unstable market prices. Amidst the price volatility, more altcoins were launched into the market, with an increased number of cryptocurrency users. This week, six altcoins have emerged as big winners in the crypto market.

An average crypto trader could view the emergence of these altcoins as a sudden wave. However, experts have predicted this outcome since the beginning of September. Thus, every diligent crypto investor should focus on coins that would earn them extra weekly profits. You may just consider investing in these coins now since there is a high possibility of earning a huge profit in return.

This is not the first time up to five cryptocurrencies are leading the market. So, you may wonder, which altcoins are leading again? Why are these altcoins everywhere on the crypto market this week? Read further for more information.

List of the 6 Big Winners on the Crypto Market this Week

Here is a list of the five big cryptocurrency winners you should watch out for this week:

  • Tamadoge
  • IMPT
  • Battle Infinity
  • Lucky Block
  • Ethereum
  • Binance Coin

Tamadoge (TAMA)

Tamadoge has refused to be an ordinary memecoin following the ordinance of Dogecoin. The coin is building a strong metaverse environment by developing varieties of cryptocurrency features. Some of these features include; Play-to-Earn (P2E), Tamadoge pets, and Tamadoge exchange.

Crypto traders currently buy Tamadoge on the OKX exchange platform. However, the coin developers are looking forward to launching the Tamadoge AR app in 2023. During the production of Tamadoge, a maximum of 2 billion tokens is usually in circulation.

This crypto project allows players to trade with its native currency, TAMA, which incurs no transaction tax. Tamadoge is a unique cryptocurrency such that traders can maximize their NFT animal art to earn substantial amounts of digital coins. A collection of expert and skilled crypto enthusiasts, software engineers, developers, and markers, are working closely to keep promoting Tamadoge among the Crypto community.

Experts have predicted that Tamadoge will possibly yield a price increase of 100x by 2023. Research has also revealed that investors participating in the Tama coin sales got 180% ROI from the first day. The bullish behavior of the TAMA coin is more rapid than ever, especially since it was listed on the OKX exchange. Thus, you can enjoy the benefits of trading with Tamadoge by visiting the exchange platform or by visiting LBank on Wednesday 5th October when TAMA will go live there.

TAMADOGE

>>>Buy Tamadoge Now<<<

IMPT

Ever wondered if it was possible for a cryptocurrency project to be centered on creating a socially conscious environment? Well, if you haven’t, it is very possible. And that is all because of IMPT

IMPT simply means “Initiative for Multipurpose Prevention Technologies.” It is a platform that helps businesses and individuals connect with brands aiming to reduce their overall carbon footprints. 

It is more than just a crypto project – it helps people tackle climate change by offering simple and effective mechanisms. There are lots of companies worldwide that contribute to greenhouse gas emissions, and IMPT is offering a solution with the use of carbon credits. 

Carbon credits help to eradicate emissions – certified Climate Action Projects created them. And one carbon credit is equivalent to one ton of carbon dioxide emission. Therefore, businesses and individuals who contribute to these emissions can purchase carbon credits to cover their emissions. 

You can also get carbon credits by participating in product shopping from IMPT partner brands. Points are earned as you shop, and these points can be converted into carbon credits. And the cool thing is that you can mint carbon credits as NFTs, which can be sold on the IMPT marketplace

IMPT is gaining momentum and has over 10,000 brand collaborations where users can get carbon credits to minimize their carbon footprints. The platform is growing and helping foster a green and carbon-free environment. 

impt.io

>>>Buy IMPT Now<<

Battle Infinity (IBAT)

You should not sleep on one of the best cryptocurrency projects launched in 2022. August was a lucky month for IBAT holders, as the price skyrocketed from $0.0015 to $0.11 per token. Although crypto enthusiasts predicted a huge price increase by the end of 2022, the first week of October is already manifesting the prediction.

Battle Infinity has grown so much in popularity due to its added features. Crypto traders can now stake tokens to earn some cryptocurrencies, similar to the Ethereum Proof of Stake (POS) mechanism. IBAT developers have also linked some battle games with access to their own NFT crates.

The IBAT stellar roadmap has caught the attention of several crypto investors and traders. It offers valuable experience due to the established metaverse-based concept. The project idea is focused on building an ecosystem that allows players to explore several gaming options. The IBAT gaming leadership board is directly proportional to players’ rewards. On the other hand, the hike in Battle Infinity price can be associated with its recent listing on PancakeSwap.

battle infinity

>>> Buy Battle Infinity Now <<<

Lucky Block (LBLOCK)

Several lottery systems exist in the gaming industry, but there have been no leading fair coins in the digital crypto space. Lucky Block players have an equal opportunity to win games using the LBLOCK token. The payment method is transparent and swift, as players will experience no delay.

Early buyers of Lucky Block experienced a fast selling out in the first quarter of 2021. Within 49 days, 32.5 billion tokens have been sold out, generating huge profit for investors. Lucky Block’s growth did not end there, as it kept establishing its base in the cryptocurrency environment.

The Lucky Block coin has gained much presence on several social media outlets since its new version was launched on the 25th of July, 2022. The older version of the digital coin followed the BNB chain pattern. On the other hand, the latest version is built on the Ethereum blockchain. Based on this development, traders can expect more exciting projects from Lucky Block in the near future.

lucky block

>>>Buy Lucky Block Now <<<

Ethereum (ETH)

Interestingly, Ethereum is not a digital coin that survives only on past glory. It happened to be one of the top 5 winners of digital currencies for this week. Although many digital currencies experienced a downfall in the past few months, Ethereum is steadily gaining ground. Since Ethereum developers completed the “merge” project on the 15th of September, Ethereum’s price has been more stable than most cryptocurrencies, including Bitcoin.

The price of Ethereum has recently been between $1,200 and $1,500. Financial experts predict the market may likely experience high volatility due to global economic inflation. Thus, encouraging traders to buy Ethereum now. Research has also revealed that the volatility will likely happen by the end of 2022.

The good news is that Ethereum investors will highly benefit from this high volatility. The recent price prediction suggests that Ethereum may hit $4,000 in favor of its investors. Whatever happens in the near future, financial planners advise that crypto traders diversify their portfolios by investing in the Ethereum currency.

ethereum

Binance Coin (BNB)

Developers of Binance Coin have built a large ecosystem that accommodates several utilities, including listing fees, exchange fees, and trading fees. BNB is built on the Ethereum blockchain while hosting cryptocurrency activities like Binance Smart Chain. Unfortunately, the Binance Coin experienced a price downfall in 2020 due to the pandemic outbreak. However, there has been a positive turnaround since the coin hit $690 in May 2021.

The Binance Coin’s uniqueness is seen in traders’ opportunity to trade digital assets systematically. Although Binance charges a transaction rate of 0.1%, traders can easily make this payment with BNB. The vast market possibilities BNB presents contribute to its massive global adoption.

binance

Final Thoughts

The six cryptocurrencies discussed above will possibly stay at the top for a long time, considering traders’ massive response to the trending market charts. However, traders seem to have developed a greater interest in the Tamadoge, Lucky Block, and Battle Infinity digital coins. These latest altcoins can compete closely with older altcoins in the crypto market.

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