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How did Ethereum mining change after Constantinople: “bomb complexity” and hash rate



On March 1, after a significant delay , the long-awaited update of the ethereum called Constantinople was launched , which, in addition to improving the mining efficiency of Ethereum , also reduced the reward for blocks from 3 to 2 ethers (ETH).

Activation of "Bombs complexity"

Ethereum currently relies on a network in which many miners are involved in verifying transactions on the ETH blockchain. However, in future, ethereum is preparing for a transition from the current mining model called Proof-of-Work to Proof-of-Stake, which implies the abandonment of miner devices.

To keep miners from refusing to support the network, a “bomb of complexity” is included in the code of the etirium, which gradually complicates the Proof-of-Work (PoW) process and stimulates the transition to Proof-of-Stake (PoS) .

It is obvious that the ethereum miners are not interested in the Proof-of-Stake. Nevertheless, investors patiently expect a long transition to this algorithm, since it should lead to a decrease in the rate of inflation of ethereum and to an increase in its price.

On the graph below, you can see how hardfork Constantinople influenced the complexity of mining , the time of extraction of blocks and hash rate:

Reducing the average complexity of mining in the Ethereum network

The graph of the average complexity of mining etririum shows that because of hard forks, which occurred on March 1, the complexity of mining has decreased significantly.

It also indicates that a decrease in rewards for a mined block is associated with the complexity of mining in ethereum.

Reducing the average mining time of the block in the Ethereum network

After the hard fork of Constantinople, the mining time for the block of ethirium was reduced by 30% – from 19 seconds to 13 seconds.

Thus, the decrease in mining remuneration and block mining time suggests that the hard forks of Constantinople did not have a significant impact on the miners, because now the miners, although receiving less payment, can mine more blocks over a period of time.

The average hash rate on the Ethereum network has not changed. Why?

The graph above shows that after the hardfork Constantinople hash network network hash rate has not changed, which was a surprise. Since after hardforka, the complexity and mining time decreased, it was expected that the hash rate would increase dramatically, as a decrease in complexity implies an increase in productivity.

One of the reasons for the constant hash rate could be the increase in the price of ethereum after the hard forks of Constantinople, and the miners could hope for bullish forecasts for the price of the broadcast, despite the decline in remuneration for the extracted block.

Publication date 11.03.2019
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US SEC Commission: Some Stablecoins May Be Recognized to Securities



According to Valery Schepanik, senior consultant for digital assets of the United States Securities and Exchange Commission (SEC), the norms of securities legislation may apply to certain types of glasscoins . Reported Decrypt .

According to Shchepanik’s classification, one stablecoin can be tied to real assets like gold or real estate, the other to fiat currency, and the third to use various “financial mechanisms that support price stability.” It is the third category, in its opinion, that can become the object of close attention of the regulator.

“I came across steyblokinoy, the value of which controls a certain pricing mechanism associated with the emission, creation or redemption of another type of digital assets tied to them. Or, it is supported by control over the ratio of supply and demand in order to keep prices in a certain range , ”said the SEC representative.

According to her, if the central side controls the steakblock's price volatility, or if the buyer is promised a guaranteed income or a controlled price, such an asset can be recognized as a security.

She noted that the agency applies equally to all cryptocurrency projects. Shchepanik also emphasized that companies should contact the agency for consultation before the release of the token , and not after:

“We would prefer that people turn to us for permission or advice before they do something, rather than do something first, and then come to ask for forgiveness.”

Publication date 18.03.2019
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Japan will consolidate the rules for cryptocurrency in the category of "cryptographic assets"



The Cabinet of Ministers of Japan proposed amendments to the laws “On Financial Instruments and Exchanges” and “On Financial Settlements”. Thus, it is planned to consolidate a number of norms regulating the market for digital assets.

The Law “On Financial Instruments and Exchanges” is aimed at ensuring the transparency of markets and the safety of investors. It contains clear requirements for operations with derivatives and securities.

Several points may be added to Japanese law.

So, it is proposed to make cryptocurrency in a separate category – “cryptographic assets”. This is consistent with the definition adopted by the G-20 countries. Companies that deal with their exchange will receive the status of "agents for the exchange of cryptographic assets."

Cryptocurrency exchanges may be required to keep clients' funds in cold wallets. If for these purposes it is necessary to use the infrastructure that is connected to the Internet, then the assets should be provided with their own funds of the exchange.

Margin trading of digital assets is proposed to regulate by analogy with the markets of foreign currencies.

"In addition, cryptocurrency companies can prohibit the use of promotional materials that encourage speculation and indulge in dishonest practices (price manipulation, insider trading, etc.)."

Publication date 18.03.2019
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Ledger Nano S Wallet Receives Certificate of the French Cyber Security Agency

Ledger Nano S was the first hardware cryptograph certified by the French Information Systems Security Agency (ANSSI). Ledger is proud to announce that it is a wallet! The obtained CSPN certificate shows a third-party assessment of security, rather than taking our word for it. Read more here: […]



Ledger Nano S was the first hardware cryptograph certified by the French Information Systems Security Agency (ANSSI).

As noted in the company's blog, the process of obtaining the first level of a security certificate involves evaluating a product according to several criteria, including "firewall, identification, authentication and access, security of communications and embedded software."

“We are proud to announce that ANSSI has passed independent certification ,” said Ledger CEO Eric Larshevek. “ For Ledger, safety is paramount.”

He also promised that his company would make an effort to certify the rest of its products.

Recall, recently the French manufacturer of hardware wallets Ledger reported vulnerabilities from its competitor Trezor.

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