Newly mined Ethereum is at its lowest rate ever. Good news for miners?
February 13, 2019 | AtoZ Markets – According to Etherscan data on 11th February, Ethereum mining rate has drastically been reduced to the lowest ever recorded. According to the same source, 13,330 new Ethereum have been created on 10th February, which was less than the over 20,000 generated in December 2018 and the all time high of 39,000 created on 30th July, 2015. The decrease in the mining of new Ethereum in recent times was as a result of sudden increase in mining difficulty according to Etherscan data.
Ethereum ‘Difficulty Bomb’
Ethereum developers met in 31st August, 2018 to discuss about the so called ‘difficulty bomb’. Difficulty bomb is a mechanism adopted on the Ethereum blockchain to make Proof of Work (POW) mining of Ethereum to become progressively harder with time. It is also called Ethereum ‘ice age’. To make this happen, the developers agreed to include such code for difficulty in the upcoming Constantinople hard fork
After Ethereum switched to Proof of Stake (POS) consensus algorithm, the developers meant to discourage miners that are still present on the Proof of Work algorithm. However, ETH developers have delayed the ‘difficulty bomb’ idea many times because the POS algorithm has not been implemented yet on the Ethereum blockchain.
Meanwhile, this delay has also lowered mining difficulty. The developers have then decided to compensate for the easier mining by introducing a new feature called ‘thirdening’ to reduce the reward for every mining block from 3ETH to 2ETH. With the new ease of mining, the daily quantity of Ethereum mined per block will increase. According to Consensys, this upgrade will happen at block 7,080,000 on 27th February
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