Ethereum (ETH) Miners Voting For Block Gas Limit Increase, Vitalik Buterin Proposes Another Solution

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Fri, 06/19/2020 - 13:23
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Vladislav Sopov
Ethereum (ETH) development and mining studio Bitfly revealed that miners are voting for an increase in the block gas limit. Why are Ethereum (ETH) core devs concerned?
Ethereum (ETH) Miners Voting For Block Gas Limit Increase, Vitalik Buterin Proposes Another Solution
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Many prominent contributors to the Ethereum (ETH) ecosystem believe that this solution could result in network congestion and vulnerability.

Block gas limit surges 25%

As per an announcement from Bitfly, Ethereum (ETH) miners are upvoting an increase in the block gas limit from 10,000,000 Gas to 12,500,000 Gas. This would result in a significant increase in the transactional throughput of the Ethereum (ETH) blockchain.

Ethereum (ETH) miners increase block gas limit to process more transactions per second
Image via Twitter

As a result, the Ethereum (ETH) mainnet would be capable of processing 44 transactions per second instead of the current level of 35 TPS.

However, top-level Ethereum (ETH) developers suspect that this upgrade could threaten network operations. Ethreum Foundation team lead Péter Szilágyi highlights that such behavior from miners is egoistic as they don't care about:

the long term health of the network nor about DoS attacks.

Lefteris Karapetsas, founder of the Rotki decentralized portfolio tracker added that such a rapid increase in the block size would lead to an upsurge of node volume and, therefore, would damage Ethereum (ETH) usability.

Increased block gas volume results in the issues with network operations
Image via Twitter

Also, independent Ethereum (ETH) researcher Alexey Akhunov, in a semi-ironic tweet, claimed that it is the Bitcoin (BTC) network that would benefit the most from such a controversial upgrade.

Viitalik's proposal

Ethereum Foundation co-founder Vitalik Buterin proposed increasing gas costs for some particular types of transactions. According to his tweet, fees for initiating storage-accessing transactions should be way higher.

As covered by U.Today Crypto News, new research from Glassnode detected that only 10% of Ethereum (ETH) fees are paid by owners of accounts who use Ethereum (ETH) for retail transactions.

Stablecoins, Ponzis and DeFi account for the rest of miner rewards. In general, the abuse of the network by Ponzi schemes built around Ethereum-based stablecoins has already resulted in an upsurge of gas fees.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)