September is going to be a very busy month for the Ethereum network and one I really look forward to. There are a number of projects waiting for gas to be reduced on Ethereum to process smaller transactions for example the buying of lottery tickets, or in app items. Must of this should start being addressed starting this month which will pave the way for mark through put for the network.
Ethereum is pushing towards Metropolis which will be broken up into two releases called Byzantium and Constantinople.
Byzantium is set to release on about September 22nd so lets take a look into the first stepping stones to alleviate stress on the Ethereum ecosystem and increase functionality.
New Mining
Ethereum difficulty will start to majorly increase to make it less profitable to mine Ethereum. This is to kick people off of POW and start moving the system into a POS. A POS system as far as I know so far is based on your wallet and how many coins you have in it. The more coins the higher your chances for hitting a block to be mined and earn the rewards of the block and transaction fees. I don't have full details on this yet so I will most likely create a new article when that time comes. For now just know Ethereum will be changing over to a POS instead of a POW so you might want to reconsider those Ethereum contracts from cloud mining.
Zero Knowledge Proofs/ZK-SNARKs and Abstraction EIP 86
Yeah a bunch of crazy names and numbers right lol but what things things above do is helps pave the way for some new lower fee transactions by means of the following.
Zero Knowledge Proofs/ZK-SNARKs - While this is just building blocks for these new additions when they will do is provide a higher level of anonymity for Ethereum
Full details on this if you like can be found at https://chriseth.github.io/notes/articles/zksnarks/zksnarks.pdf
EIP 86 - This feature is going to allow users to have more control over their private keys and the ability to do contracts to pay mining fees instead of paying for gas all the time to do the transaction. This I believe will allow large entities to contract out special mining contracts to be fulfilled at a set rate all the time. It also helps reduce the risk of being hacked from quantum computing.
Hey ,
Thanks for the great content
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Very useful information, which I didn't know, but when it passes to POS, do you think it will have negative repercussions on its value or positive?
EOS
Very nice article @bitcoinflood ! What I don't understand is how this will impact cloud mining - will it end up being obsolete? Or will it become more profitable to get those ETH rewards from mining stacking up in your wallet? Also, to make things easier for us, will the change from POW to POS mean that we will be rewarded passive assets like GAS for NEO?
Rewards from general mining will drop to near zero once Ethereum goes fully to POS. Proof of stake goes by having you wallet open and how many coin are in your account. The more coins the higher chance you have of hitting a block. It actually is a better way to mine but has its flaws as well.
pros - less processing power, electric to be used etc
cons - you normally need a good amount of coins the percentage of them to hit a block yourself.
I do believe some places will be pool POS though
Pool POS does sound like a good idea, lol. I really appreciate you explaining this to me, now it makes better sense and I will start looking into ETH more from now on. Stack up as much as I can :)
How do you think the release of Metropolis will affect Ethereum's price on the exchanges? Thanks for the detailed article.
A positive impact for sure it starts to address some of the issues it ran into when growing.
Great content @bitcoinflood - I'm very excited by the developments of Ethereum and I certainly feel it has the potential to see similar growth of that of Bitcoin.
But can you explain the developments of the sub currencies being extracted from Ethereum - how do they plan on supporting the currency?
Followed and resteemed!
it is kind of like bitshares where you have sub coins that are created by users for different things they programmed it to do. Ethereum is somewhat the same but it allows for smart contracts and conditions which is perfect for things like in app rewards, lottos, loans etc.
How do you see Ethereum developing? We can see it outpacing Bitcoin in growth, but do you think the value of Ethereum will surpass Bitcoin and if so how long do you think it will take? Personally I think its only going in that direction!
There are about 4.5 times the amount of coins as bitcoin for ETH so the price will always be lower per coin due to there being more of them. I do see it out beating bitcoin if bitcoin developers continue to not evolve the blockchain they will die. ETH is evolving and bettering it is a process and not that fast but it is still being done which is what any company needs to do to survive.
Bitcoin mainly holds value now because that is what everyone associates cryptos with. You say Ethereum or another coin and a much larger percent of people have no idea what your talking about.
Of course, but people are unaware of other currencies due to their life infancy. Give it time and more and more people will begin to understand cryptocurrency .
So are you saying that these updates should help Ethereum continue to grow into that "every day currency" many people would like it to become?
Ethereum is more of the core that supports other contracts and systems not as a stand alone system. But the gas price was making it impossible for these other apps and programs to launch mostly because of the mass of ICOs
Eth was never designed to be a currency
Let's not forget that if you don't fork and try to remain on the old chain that the Ice Age will force you to hard fork anyway least your block times become way too long to be useful.
Great
Is now the right time to buy it?
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Thanks for the info and will be interesting to see how September plays out.
Interesting article
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Very appealing topic, hope you'll bring more to the subject, pos vs pow is definitely a core aspect of how ETH will evolve. Thanks!
Very informative , keep the posts coming.