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Nvidia to slash hash power of Graphic Cards to make it less desirable to Ethereum miner

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The graphics card-making giant, Nvidia has announced its plans to reduce the hash rate of newly manufactured GeForce RTX 3080, 3070, and 3060 Ti graphics cards to make it less desirable to miners.

Nvidia’s Priority is Gamers , Not Miners

It is important to note that NVIDIA GPUs are programmable. This makes it possible for the users to frequently explore new applications for them, for instance from weather simulation and gene sequencing to deep learning and robotics as well as mining cryptocurrency.

In a bid to aid in getting GeForce GPUs in the hands of gamers, Nvidia had previously announced that all GeForce RTX 3060 graphics cards were to be shipped with a lowered Ethereum hash rate. In extension to its February announcement, the California-based company is now taking additional steps by implementing a reduced ETH hash rate to a fresh batch of GeForce RTX 3080, RTX 3070, and RTX 3060 Ti graphics cards.

These cards will start shipping in late May and will be labeled with a “Lite Hash Rate” or “LHR” to help customers identify “exactly what they are getting”, said Nvidia. It also revealed that the reduced hash rate is only valid for the newly manufactured gaming cards with the aforementioned identifier and does not apply to the ones that are already purchased.

While detailing the need to maintain the inventory for gamers, the chip-maker stated that GeForce is made for gaming and also went on to add,

“GeForce RTX GPUs have introduced a range of cutting-edge technologies, created to meet the needs of gamers and those who create digital experiences. We believe this additional step will get more GeForce cards at better prices into the hands of gamers everywhere.”

Over the past year, the world has seen massive disruption with respect to supply chain activities. During these times, gaming splurges have noted a huge rise, however, the supply of graphics cards has failed to meet the demand. Both gamers and Ethreum miners rely on these GPUs.

Here’s Why Ethereum Miners Dumping Coins Might Not Negatively Impact Price

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The DeFi hysteria has significantly had not only helped Ethereum but has also impacted the ETH miners. But now it appears that the miners of the network were dumping coins across various cryptocurrency exchanges. This was revealed by the crypto intelligence platform, Santiment which further revealed that last week’s increased FOMO involved with the on-chain activity, and the trader has faded. Following which the crowd sentiment has flipped back to bearish.

But it does not necessarily indicate a negative picture. Not yet.

More than what meets the eye

Ethereum’s price seems to have stagnated when compared to Bitcoin. While it did break above the level of $400, the stint was rather short-lived as it sustained a minor pullback and was currently trading at $396. This correction to a local low was something that has been materialized every time there was a spike in the ETH’s Token Age Consumed.

ETH1 scaled

The metric, Token Age Consume, essentially indicated the number of tokens changing addresses on a particular date, multiplied by the days since it last moved. In short, it provides data on the movement of coins that has been dormant for a long time. Hence, the spike noted in the above chart denoted that a significant amount of previously dormant coins were moved either between exchanges or wallets which sparked a minor sell-off resulting in the pullback in question.

Since the local bottom has now been formed, there could be potential short-term behavioral shifts among the market stakeholders in the coming days and Ethereum could see rising pressure from the buyers’ end.

DeFi’s Role

The role of decentralized finance in Etereum’s price surge has been tremendous and DeFi market’s total value locked is continuously increasing. As of the 26th of October, the TVL figure was registered at $12.39 billion on DeFi Pulse’s website. This was another positive indicator that depicted Ethereum’s capability for an uptrend.

Strong technicals

ETH 5 e1603798579551

The ETH price candles were supported by both the 50 [Pink] and 200 [Purple] daily moving averages. The 200 DMA was hovering below the 50, depicting a bullish picture for the coin. In addition, the RSI was well above the 50-median line but was not in the overbought territory. This depicted a sentiment of rising buying pressure and not its exhaustion among the market participants.

It is also important to note that there is no fear of missing out [FOMO] and erratic behaviors from investors in the market. That not only indicated the market heading towards a tad big more maturity but also that the uptrend is likely not overextended.

Ethereum Miners Hit Back at Plan to Cut Miner Rewards by Over 70%

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A fresh proposal for an Ethereum improvement (EIP), aimed at reducing block rewards by a massive 75 percent, caused severe disapproval by Ethereum miners who claim that the move would jeopardize the safety of the network. Miners say that those responsible for the new EIP-2878 care less about the security of the blockchain and are more concerned about the interests of the investor.

The fresh EIP-2878 suggests proof-of-work validators reward be slashed by 75 percent, from 2 ETH per block mined to 0.5 ETH. The justification of this plot is to align Ethereum’s inflation index in line with that of Bitcoin and safeguard Ethereum’s power parities.

https://twitter.com/JohnLilic/status/1294600620847108096

The proposal was originally published on August 11 by ConsenSys Managing Director John Lilic and Ledger’s Global Head of Client Success Jerome de Tychey on the Ethereum Magicians Forum, where developers and miners can discuss its effectiveness. However, the responses of the miners since the proposal was made have been against it.

Ethereum miners worried fresh EIP might leave the network vulnerable to attack

In particular, Ethereum miners who use GPUs did not waste much time before hitting back at the fresh EIP. The primary concern of GPU Ethereum miners is the significant decline in block rewards reduction more than doubled the previous modification, which might facilitate a 51 percent attack on the Ethereum blockchain.

According to Time Beiko, the product manager at PegaSys:

“The biggest consideration, in my opinion, should be the security of the network (i.e. how do we ensure the likelihood of 51% attacks remains low, how do we keep a diverse set of miners on the network, etc.).”

Another user raised a different query in his argument against the fresh EIP, claiming that ASICs which are more profitable compared to GPUs would kick them out of the market if block rewards are reduced without changing the algorithm.

A drop to 1.5 ETH or 1 ETH would be more reasonable

The co-founder and CEO of Bit Capital Group, Jimmy Thommes, argued that the Ethereum network should stop trying to imitate Bitcoin’s inflation rate because it is an older network created under different ideologies. In addition, the fresh EIP makes Ethereum miners feel that they are taking advantage of it.

Indeed, most of Ethereum miners were not against the precept to reduce block rewards as Ethereum network does not have an inbuilt halving tool like BTC to curb inflation. The system is dependent on EIPs to curb inflation rates with proposed block rewards diminution. However, the majority of Ethereum miners offered a reduction to 1.5 to 1 ETH would be wiser.

Ethereum User Loses $5.2M After Two Grave Mistakes

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Over the last day, the Ethereum user has fortuitously spent about $5.2 million on transaction fees to make just two ETH transactions. On June 10, the user-initiated a transfer of only $130 to ETH, accidentally incurring a cost of $2.6 million.

A few hours later, the same Ethereum user started another transaction. This time round, however, the transaction involves a much higher amount of Ethereum worth $86,000. The problem is that users still spend the same amount of transaction fees, another $2.6 million error. Oh, Ouch!

Mining pools’ reaction to the $5.2 million Ethereum user mistake

In the two cases, the mining companies have frozen the funds and are exploring the option to give them back to their original owner. Spark Pool, which mined the first transaction, issued a public statement instantly after block number 10237208 was extracted, noting that it has launched investigations on the matter.

Moreover, Spark Pool noted that the mining firm has the experience of handling similar issues. Notably, the firm saw a similar incident more than a year ago when block number 7238290 was mined more than a year ago. The transaction involved a transfer of 0.1 ETH, at the cost of 2,100 ETH in transaction fees.

On the other hand, the second transaction involving block number 10241999 was mined by a different mining firm by the name Ethermine. Similarly, the firm reacted instantly to the incident and tweeted that the original owner to contact their customer support to settle the matter.

 

 

A bad mistake or a money laundry strategy?

Some people are contemplating that the two transactions could have been a money-laundering tactic. Theoretically, an Ethereum miner could turn illegally earmarked ETH into legitimate by miner’s reward by including a vast transaction fee and mining the block themselves. This is practically possible since ETH miners decide which transactions to include in their blocks.

Nevertheless, this does not seem to be the case in the two incidents. The strongest point of view against the argument is that two different transactions ended up in two separate mining pools, which uses thousands of ETH miners scattered globally, to find new blocks. This means that the funds were not being sent to one receiving entity; since they would be eventually divided among the thousands of miners that make up the pool.