Ethereum

Discussion in 'Blockchain & Cryptocurrency Mining' started by koss, Dec 5, 2017.

  1. koss

    koss Member

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    Here is a classic example what's good and bad about Ethereum from coindesk.com this morning.

    The good part is that you can write this kind of stuff, the bad part is it uses the Ethereum block chain. What's happening is all these ICO tokens, VMs, DAOs, and Smart Contracts, live on the same block chain because it's easy to do it that way, the end result is the Ethereum block chain is growing faster than technology is. The storage space requirement is growing exponentially, and the bandwidth required as well. That's unsustainable, and it will collapse, leaving a hand full of highly centralized big servers as the only full nodes.

    This chart will give you an idea of the block chain growth rate
    https://etherscan.io/chart/chaindatasizefull

    It's gone from around 100GB at the start of the year to over 450GB atm.
    By comparison, the Bitcoin block chain is around 170GB and it's taken 8 years to get there.

    The solution is these apps need to store their data on some other type of chain, maybe an IOTA type of tangle.
     
  2. mr camouflage

    mr camouflage Member

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  3. Ronald Reagan

    Ronald Reagan Member

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  4. OP
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    koss

    koss Member

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    Last edited: Dec 6, 2017
  5. douver

    douver Member

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    Ethereum has dropped to new lows in btc terms currently trading around 0.0358, its now lower now than its Mar '16 pump high of 0.0372 for the first time since the pump to 0.152 earlier this year. I think the fact 1 Dapp has clogged the chain up is a major problem causing the drop. Ethereum needs rapid scaling much sooner than BTC by the looks of it.

    Also to note: pretty much none of the 100+ Ethereum ICO's can actually release an actual product that anyone uses yet either because of this, so most of their large valuations are also worrying.

    Pending transactions still trending up.

    https://etherscan.io/chart/pendingtx
     
  6. whatdoesthisdo

    whatdoesthisdo Member

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    This is good for ETH not bad. All systems need to be tested and then adapted, then retested. It is organic when scaling. The same has happened to BTC and will do for any major coin that's worth it's weight. Andreas speaks about this in his book "The internet of Money" which is worth read.
     
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    koss

    koss Member

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    ETH fees are right up, I tried to trade a small amount from my Exodus wallet which uses the shapeshift exchange as the backend, and the minimum transaction was like $50, it was below $10 the other day. Apparently there is a huge backlog of ETH. The Bittrex ETH wallet is down atm. and so are all the ERC20 coins. I guess it's better than it happens now, than when ETH has more cryptokitties applications all at once. Serious scaling issues that need addressing asap or the platform is going to get projects cancelled.
     
  8. douver

    douver Member

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    I think Ethereum's problem is they need scaling 100x better if they want to service all these ICO's to a large audience. 1 Dapp (Crypto Kitties) that isn't exactly widely used clogs the network - they have 100+ ICO's in theory coding other Dapps.

    In comparison - BTC's current scaling issues would almost be solved if exchanges would bother to swap to Segwit wallets (not sure why they don't if users really care about fees). On top of that it has lightning and rootstock sidechain's now in public beta running on the main chain. These when fully released would provide the 100x (potentially much more) scale if needed. So I don't think they are actually comparable issues.

    I think the only practical solution is for Ethereum to run a sidechain (or multiple sidechains) like bitcoin's rootstock to run Dapps - but if they need to do that what advantage does Ethereum even have over BTC or other coins? Why even have a complicated first layer?

    I'll admit I haven't read Andreas book though, I will have a look into it.
     
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    koss

    koss Member

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    The minimum ETH exchange amount on shapeshift is about $70, never seen it so high. The ETH (inc. ERC20 tokens) transactions are banked up worse than ever before, with no sign of it abating until the CryptoKittes fad wears off.

    https://bitcointalk.org/index.php?topic=2540248.0

    One of the problems with Etherum is the maximum block size is not limited by bytes, as in BTC, but in the amount of gas per block which is limited to 3,141,592. That could be burned in one transaction, thus stopping any others being in the same block. Obviously the number is way too low, probably to keep fees down instead of letting market forces determine the price.

    Latest issue of Let's Talks Bitcoin podcast is about Ethereum
    https://soundcloud.com/mindtomatter/lets-talk-bitcoin-349-a-little
     
    Last edited: Dec 11, 2017 at 8:21 AM

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