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Tech Is Charlie, Hackers Are Charlie

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Yesterday a terrorist attack in Paris took the lives of at least twelve persons, including many journalists and cartoonists of the satirical weekly newspaper Charlie Hebdo, “guilty” of informing and entertaining the public.

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The disgusting attack against freedom of thought and the free press has been universally condemned, and it may seem unnecessary for a tech magazine to add its voice to the global outrage.

Je Suis Charlie

Charlie Hebdo attackBut every journalist is Charlie. In particular, every technology journalist is Charlie, because Tech Is Charlie.

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Science and technology advance with free information, free inquiry, and free dissent. In a healthy society that can provide a fertile ground for science and the development of new technologies, everyone must be free to express their dissent by whatever non-violent means, including satire.

History shows that important scientific advances, paradigm shifts, and revolutionary new technologies are often developed by free spirits who don’t respect authority, question everything, and aren’t afraid to throw stones at sacred cows. It can be argued that the success of the Western civilization, as far as scientific and technical progress is concerned, started with society’s reaction against the secular power of the Church. The Inquisition burned Giordano Bruno – but they couldn’t burn Newton.

I am not unconditionally supportive of our Western civilization, and I regret our past – and present – harmful actions against the rest of the world. But our civilization has developed the concept of a secular society with civil rights, freedom of thought, information, non-violent dissent, and satire. That’s what the terrorists want to take away, and that’s what we must preserve.

Hackers Are Charlie

Hackers have a playful and irreverent spirit. They play with everything, make fun of everything, and by doing so, they create the future. The Internet was conceived as a government project, but it was developed by those who started playing with computers and software to see what cool things could be done. Today’s biohackers, neurohackers, crypto-enthusiasts and tinkerers in the Western world, relatively free from the power of organized religions, are creating tomorrow’s technologies. It is important that they remain free to do so.

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13 Comments

13 Comments

  1. Bitcoins and Gravy

    January 8, 2015 at 7:00 pm

    You wrote: “But our civilization has developed the concept of a secular society with civil rights, freedom of thought, information, non-violent dissent, and satire. That’s what the terrorists want to take away, and that’s what we must preserve.”

    I agree but the big question is this: Who ARE the terrorists?
    In my opinion, the top 3 are: The CIA, the Mossad, M15/M17

    How many terrorist plots and attacks have these organizations coordinated? The answer is: we don’t know but we know they’re responsible for many “false flag” operations around the world that have caused irreparable damage and much suffering.

    So before you go chasing ghosts or windmills or whatever the TV tells you is the new “Threat Du Jour”, maybe do a little reading OUTSIDE the mainstream media bull and find out what other people in the world are saying. Find out if some of these “terrorist attacks” might not be exactly what the television is telling you they are.

    Considering the fact that our TV’s and Radios are chock full of misinformation and propaganda these days, is it really that hard to believe that much of what you read on “Yahoo! News” is also propaganda? Hey people your opinions are what some people want to change and control. Bottom line: Don’t let anyone control how or what you think.
    Right?

    Think about it. Which is potentially more threatening and more dangerous:
    1) poorly funded, uneducated middle eastern nut cases?

    2) Well funded, well trained counter intelligence experts with military training and backing and the freedom to go anywhere and do anything without being seen or noticed or held accountable?

    Yes terrorism is real and yes there are middle eastern terrorists. But there are also well funded movements underway that are working really, really hard to make us hate Muslims. Sorry folks, I’m not buying into it. If you are one who IS buying into it, then you might consider watching a bit less television. Just a thought.

    As is true with any group – 80% of the Muslims in this world are good people who want the same things anyone wants – food, clothing, affordable housing, a living wage, etc for themselves and their families. Most Muslims don’t spend all their time reading the Quran anymore than I sit around reading passages from the Old Testament. The Muslims I’ve known own corner stores in every major city, have wives and children, houses, mortgages or rent to pay and the same “life is a struggle bullshit” that we all have to put up with.

    Also, the majority of Muslims condemn violence and terrorism. Most Muslims practice peace just as most Jews, Christians, Hindus, etc. practice peace. The people who are trying to convince us that THE MAJORITY of Muslims are bad are themselves the terrorists. Without any statistics on their side, without any proof on their side, with poorly gathered anecdotal evidence floating in a sea of patchwork quilt events, false flag operations and pure fantasy, Big Brother and his goons want me to hate a massively large group of people – Muslims. This is the most ridiculous, childish game I’ve seen since half the American public were DUPED into believing Saddam Hussein was responsible for the 9/11 attacks on the the Twin Towers and Building #7.

    This Western attempt to demonize all Muslims is by far the sickest and scariest thing I’ve seen the media put on in many years.

    Why do so many otherwise intelligent people believe everything they hear on the news?
    Why should I believe that the murders in Paris were REALLY committed by angry Muslims? Because the TV tells me so? Isn’t it possible that this was another false flag operation aimed at getting more people on board the “I hate Muslims” train?

    I’m not saying it was a false flag operation. I’m simply stating the fact that corporate owned and government influenced networks and news programs put out A LOT of propaganda each year. And therefore I’m being intelligent in asking the question: Am I to believe what I hear on the news or could the reality be different than what is being broadcast?

    Kill your Television today.

    • Giulio Prisco

      January 8, 2015 at 8:04 pm

      Re “80% of the Muslims in this world are good people who want the same
      things anyone wants – food, clothing, affordable housing, a living wage,
      etc for themselves and their families.”

      I agree.

      Re “Yes terrorism is real and yes there are middle eastern terrorists. But
      there are also well funded movements underway that are working really,
      really hard to make us hate Muslims.”

      Again, I agree. We must protect our civilization against both.

      • Bitcoins and Gravy

        January 9, 2015 at 12:20 am

        We must protect our “civilization” against both.

        Yes but let’s act civilized about it shall we? Most civil unrest in the world is now aimed at the banking cartel and market manipulation like we see with the Wall Street gambling mob. Most civil unrest is aimed at the multitudes of elected officials who abuse their office, take bribes as often as they can and basically float around like pirates with their trusy rusty moral compasses that haven’t pointed truthwards since they were children.

        Most civil unrest is due to the fact that people in power cheat and lie and steal and manipulate and coerce and subjugate and imprison and kill.

        Really it’s time to rise up and rid the world of the fascist power mongers. But we can’t. We’re busy. I’ve got a podcast to edit tonight; Margaret is watching her favorite sit com; David is busy playing war games in his parents’ basement; Ron and Jessica are down at the pub getting blitzed; Stephanie and Diane are busy planning their shopping trip for tomorrow; Derek, Bruce and Mark are watching the big game tonight; Phil has a report due tomorrow for work; Mary has a paper due for her class; Marcel is surfing the net in search of the perfect restaurant and everyone else is on facebook pretending like they have hundreds of close friends who would do anything for them.

        panem et circenses.

        Does anyone know what that means?

        We are being appeased en mass so that we don’t rise up en mass and overtake those who are abusing their positions and their power. We ought to be busy collecting feathers and stockpiling barrels of tar. We ought to be busy building sturdy scaffolding in the village squares of the world and learning to tie a good noose with hemp rope. We ought to be busy digging trenches deep and wide and getting the bulldozers fueled and oiled and ready to move.

        But I’ve got a podcast to edit. I’ve got tea to make with honey. I’ve got to brave the elements and drive my car down the way for a bowl of soup for dinner. l’ve got to get into my cozy bed at midnight after kissing my dog Max goodnight. And then I’ve got to sleep. And with any luck I’ll have a nice dream. Maybe I’ll dream about finding treasure or living in a palace or having a beautiful girlfriend or flying too high in my own private jet airplane.

        • Giulio Prisco

          January 9, 2015 at 9:30 am

          I don’t disagree with the spirit of your comment. At the same time, it’s difficult and probably impossible to “act civilized” when they are shooting at you – you either shoot back or die.

          Think of a wolf – it doesn’t want to eat you because it is bad, but because it is hungry, which is a perfectly understandable motivation. So you can understand and even empathize with the wolf. But you still must shoot it if you want to stay alive.

          Of course, we should act civilized _before_ being attacked (for example, by feeding the wolf). But when the wolf jumps at you it’s too late for acting civilized.

          • Giulio Prisco

            January 13, 2015 at 9:09 am

            Again, I don’t disagree. But look, we are shooting at them and that’s a fact, but they are shooting at us and that’s also a fact. I wish to see an end to this insanity, but how do we end it? I am afraid that we can’t unilaterally stop shooting. That is not a viable option at this point – they would only shoot more.

          • Daniel Schiavini

            January 13, 2015 at 9:47 am

            I don’t have the magical solution, but I am sure the solution is not voting to far-right parties that want to end immigration and send Muslims back to their countries. And it’s not forbidding them to have their own culture, closing mosques and not allowing headscarves in French schools. The only solution viable in the long term is living peacefully together – the world is only getting ‘smaller’ from now on. And seriously, a 3rd world war would be the last of this planet.

          • Giulio Prisco

            January 13, 2015 at 9:51 am

            I agree, but my point is that if we stop shooting they will just shoot more. It’s too late to be nice, we should have been nice since decades ago. Now, they just hate us and want to kill us. It takes two to be peaceful.

          • Daniel Schiavini

            January 13, 2015 at 9:54 am

            We are shooting a great deal of the 99.9% Muslims that are actually good. Killing people is not a solution, it only creates more and more problems. It has never worked and never will. This cartoon illustrates it: http://en.wikipedia.org/wiki/Carlos_Latuff#mediaviewer/File:Bombman.png

          • Giulio Prisco

            January 13, 2015 at 9:59 am

            So what should we do instead?

          • Daniel Schiavini

            January 13, 2015 at 10:04 am

            Like I said, I don’t have a magical solution. But we should start by not discriminating them and allowing them their freedom of religion and culture

          • Giulio Prisco

            January 13, 2015 at 10:12 am

            We should certainly do that, but if we start today we can expect to see a reduction of terrorist attacks in a couple of decades, not sooner. What do we do in the meantime?

          • Daniel Schiavini

            January 13, 2015 at 10:33 am

            A big rise in terrorist attacks in 2012: 17 people died in the EU. https://www.europol.europa.eu/content/rise-terrorist-attacks-europe-2012
            That’s probably like the chance of dying from a coconut falling on your head.

            So why not spend those billions in something more useful… Why not build schools in the middle east, instead of building hate like it’s being done now? Why not give them all access to internet? Or even food. For sure that would change the western world’s image and lessen the hate.

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Will CME and CBOE Change the Course of Bitcoin Trading?

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bitcoin trading

There has been a lot of media buzz in the investment world around the introduction of bitcoin futures trading. Two of Chicago’s major firms, namely Chicago Mercantile Exchange (CME Group Inc) and Chicago Board Options Exchange (Cboe), have announced plans for bitcoin futures trading on their respective platforms, with the latter already launching its contract on Sunday. While the main fear regarding future bitcoin trading at this point is price manipulation, investors are skeptical about how the whole situation will pan out.

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Fear of Price Manipulation

As mentioned earlier, price manipulation is a big threat to the profitability of bitcoin futures trading. According to the Commodity Futures Trading Commission (CFTC), they will only play the role of a derivatives regulator and not actually manipulate the underlying cash contract. Exchanges will continue to play a major part in handling the underlying cash contract, keeping it safe from the dangers of manipulation. Since the underlying cash market of bitcoin is not regulated, the CFTC has also warned investors about this fact.

Fig 1

Figure 1: Hypothesised Daily Trend of Bitcoin Values

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The Role of CBOE and CME in Bitcoins Trading

The CBOE and CME both have been competing to become the market of choice in the United States. CBOE has already rolled out its bitcoin futures contracts, which they call XBT futures, with a limited free trading offer for the rest of the month for its customers. The rival CME group, on the other hand, is scheduled to release their version of hitcoin futures Dec. 18.

These announcements played a pivotal role last week, influencing traders and institutional investors to perform bitcoin futures trading in a more recognized and secure market. The price of a single unit of bitcoin was also affected, jumping from a formidable $10,000 to a new record high of close to $20,000. The main reason for this can be attributed to investors who understand that the exchanges will bring liquidity and price stability on an otherwise unstable and volatile cryptocurrency.

Here are just some of the ways bitcoin futures trading will change the course of bitcoin trading significantly.

  1. Risk: There’s no denying that bitcoin’s past has been marred by volatile spikes and crashes.  Some of these price changes have occurred over a very short period, enabling traders to recover their positions within a short period of time.  However, with the introduction of CME and CBOE futures trading, the United States markets might prolong the decline through the “domino” effect of selling futures trading.  Moreover, a snowballing effect through selling can affect the entire market.  The Futures Industry Association has already stressed on the bitcoin volatility issue and has requested for some form of “guarantee fund” to clear settlements to the community.
  2. Unstable Exchanges: Besides the CME and CBOE, the majority of bitcoin exchanges in the world come from unregulated markets without proper overseeing or supervision. This is problematic for traders since such exchanges form a reference point in price for the asset. Frequent outages in exchanges are a real threat to bitcoin’s price, often resulting in wild price swings. For instance, Coinbase and IG group, two famous bitcoin exchanges stopped trading on a Friday. As a result, bitcoin’s price shot up and subsequently crashed within 20 minutes.
  3. Increased Volatility: Futures markets work very differently than commodity markets, which draw in a lot of traders as well as speculators. When it comes to bitcoin, the recent Whipsaw in price is unfavorable for the introduction of new traders in the market at this point.
    The increase in speculation surrounding bitcoin price will result in even more price volatility if the number of traders is increased. Many people are of the opinion that the recent parabolic price curves will attract traders with added incentives to play with its price.
  4. Trading Profits: The aspect of trading profits becomes more complicated with the CME’s contract rules. CME’s contracts have price limits which are 20% above or below bitcoin’s reference price. This is done in order to curb unpredictability and regulate volatility.  The sole purpose of these price limits is to minimize the adverse impact of the cryptocurrrency’s wild price swings on futures markets.
    Economists, however, have stated that this might result in an opposite effect, where the trader’s profits are compromised significantly. This is due to the fact that the reference price of the whole bitcoin market is based on exchanges, which are largely operational in unregulated markets.  Such unregulated markets see frequent price swings in excess of 20%. This directly results in futures traders who will no longer benefit from the spike of a greater than 20% increase in bitcoin prices, at the aforementioned exchanges.

Side Effects of Bitcoin Futures Trading on the Market

The bitcoin market is poised to receive institutional money as a result of futures trading.  It will also open up various avenues of asset investment, as many funds that are currently prohibited from dealing in bitcoin-like alternative assets will also be able to participate in the trading exercise.
This, however, can be a major problem, as investors won’t actually be pouring their funds into the bitcoin market, but rather acquire synthetic derivates instead. No extra money goes into bitcoin itself, as these futures do not require ownership of actually bitcoins.

Final Word

The introduction of bitcoin futures trading in two major firms is definitely a blessing as well as a curse.  Both exchanges are seeking to exploit bitcoin’s popularity by attracting interest from Wall Street. Institutional investors have also been keen to trade the asset in a more recognized and regulated environment, which have also seen the increase in CME/CBOE shares by at least 9%. Normal traders are also required to pay higher than normal accounts to backstop their bitcoin trades and allow continued funding for their trade positions. However, it still boils down to the trader’s decision and his or her understanding of the movement of the bitcoin markets, which have in the past experienced significant and unpredictable volatility.

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Power Consumption for Bitcoin Mining Is Now Ranked 61st in the World

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Bitcoin Miners
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Bitcoin prices have been towering in the past couple of weeks. This is cause for celebration for users who have heavily invested in the cryptocurrency; but, it appears the value of bitcoin is not the only thing that has hit the roof in 2017. Bitcoin mining energy consumption has also reached new heights.

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A research study conducted by PowerCompare—a U.K.-based company for energy comparison tariff—found that the average power used to mine bitcoins this year has already gone beyond the annual energy consumption for some 159 countries. In particular, the global average power spent on bitcoin mining has far outstripped the energy consumption in Ireland and a couple of African countries.

This new study was based on data from Digiconomist, whose current estimation of power used to mine bitcoin hovers around 30.14 TWh annually. This figure is way above Ireland power consumption that currently stands at 25 TWh yearly.  In fact, recent research from Dutch Bank ING found out that one bitcoin transaction consumes sufficient electricity to power an average household for a whole month.

At this rate, if bitcoin miners were a single country, it would be positioned 61st in the world based on power consumption, comparable to Slovakia and Morocco. PowerCompare has already predicted that if the trend continues, bitcoin mining will expend the entire world’s electricity by February of 2020!

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Why bitcoin mining is increasing power consumption levels

What makes bitcoin mining an energy black hole?

Apparently, it is the computational requirements that process the complex cryptographic problems that miners must solve to be rewarded with the cryptocurrency. Just like other notable cryptos such as Ethereum and Litecoin, Bitcoin depends on miners to validate transactions performed in their respective blockchains.

To verify transactions, miners are required to solve complex mathematical problems, which on becomes increasingly difficult as more and more miners join the mining bandwagon. The more byzantine the cryptographic problems, the more the processing power that is needed to solve them.

In the case of bitcoin—the most popular cryptocurrency—a multitude of miners now make it absolutely necessary to use ASICs (Application-Specific Integrated Circuits) which consume considerable amounts of electricity. At present, ASICs have been designed to provide far more efficient computations, both in terms of the hash rate and power consumption when compared to CPU or GPU mining.

But the ASICs haven’t really resolved the hurdles of power consumption.

Ideally, the use of ASICs meant that the total time required to validate new blocks drastically reduces too. This hasn’t happened because of the way the bitcoin protocol was conceived. Apparently, the mining difficulty in bitcoin ensures that the total time taken for generation of new blocks must be kept constant.

As a matter of fact, the Bitcoin network automatically alters the difficulty level for bitcoin mining to ensure the discovery of new blocks every 10 minutes by miners based on two factors. First, there is the global block difficulty that forces valid blocks to have a hash value that is below the target to ensure the difficulty level is maintained.

Second, the number of miners that are actively participating in the mining process has been soaring, meaning the difficulty level has remained constant for a while now. Also, the mining difficulty automatically adjusts after every 2016 blocks on the Bitcoin network. Depending on how many users were actively mining – together with their combined hashpower—and the time it takes to find the 2016 blocks, the difficulty can either go up or down.

As the mining difficulty increases, miners should acquire more powerful hardware to accommodate for the adjustment which again increases the computational electricity. It is also worth noting that there is no maximum mining difficulty that has been set for the Bitcoin network. There is a possibility that the mining difficulty will continue to rise until all the Bitcoins are mined have been mined by the year 2140.

This means that power consumption in Bitcoin is not likely to decrease in the near future.

Challenges of mining Bitcoins

Here are some challenges of Bitcoin mining:

#1: Environmental hazards

The massive growth of cryptos has set up an exponential demand for processing power. The inordinate amounts of power required to mine bitcoins make it an environmental hazard since much of the earth’s electricity is still generated from greenhouse-gas-generating fossil fuels. This implies that bitcoin mining could be contributing to the climate changes and global warming.

#2: Stumbling block for mass adoption

The bitcoin cryptocurrency was conceived as a decentralized, peer-to-peer and trustless currency free from regulations of government agencies and financial institutions such as banks. Unfortunately, the adoption rate is discouraging. This can partly be attributed to the high energy consumption costs.

A recent study conducted by researchers from the HINUI (Hamilton Institute at the National University of Ireland) found that the cost of Bitcoin mining on the commodity hardware at present far exceeds the price of the rewards. In fact, Bitcoin mining has now been left to the big players who have the money to buy expensive ASICs with some of them leasing their hardware to small players in the so-called cloud mining.

#3: Rise of illegal piracy

In order to work around the hurdles of power-intensive requirements of bitcoin mining, some users have resorted to using dirty tricks to obtain the computational power from other people’s machines. A recent study published by Futurism found that Pirate Bay has covertly been testing a Javascript mining app on their website which allocates a huge volume of their visitors’ CPUs for purposes of mining the cryptocurrencies.

While the website in question was developed to help users in illicitly downloading files such as games, movies, and music, the JavaScript app hijacks the users’ CPUs to mine cryptocurrencies which is illegal.

Conclusion

The rise of bitcoin values is a cause for celebration in the crypto universe. It means that the entire global community is beginning to appreciate the value of cryptocurrencies in the world economy. However, mining energy consumption is soaring at an alarming rate. The quicker we find mechanisms to make bitcoin and other cryptocurrency mining electricity use “greener,” the better it would be for the Blockchain technology that is often heralded as the next internet.

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Cryptokitties Made Us Realize These Biggest Industry Challenges

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You may not be in the loop but Cryptokitties have just surpassed the major distributed cryptocurrency exchange such as EtherDelta to become the largest smart contract on the Ethereum network by gas consumption. As of writing this, the Cryptokitties are accounting for slightly more than 14% of the Ethereum’s transactions in over 1,500 blocks according to ETH Gas Station.

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This is a staggering volume of traffic for an online game that, on the surface, appears quite bland. But the popularity of this cryptocollectible has underscored one of Ethereum biggest downsides which were never envisioned: lack of scalability. According to Etherscan, Ethereum transactions have increased six-fold since the game’s release on 28th November 2017.

Already some investors are raising concerns that this frivolous game is crowding out more genuine and serious business users in the network. But how exactly have Cryptokitties phenomenon congested the Ethereum network?

Well, in “Cryptokitties Made Us Realize These Biggest Industry Challenges” we dive deeper to explore how the Cryptokitties phenomenon has contributed to Ethereum’s scalability challenges. Let’s jump in.

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Challenges of Cryptokitties

Here are some challenges the Cryptokitties phenomenon presents for the Ethereum ecosystem.

#1: Scaling challenges

While the sensations of Cryptokitties is great for Ethereum adoption, the pressure it has placed on the Ethereum blockchain means that developers have to work out a scaling solution. The traffic is making it extremely difficult for users to play the game, and many transactions such as buying and selling of cats are taking a lot of time to process with some demanding multiple attempts.

All of these intricacies are related to the Ethereum blockchain’s throughput limit that is set at roughly 15 transactions per second. Until the throughput limit is expanded, Cryptokitties have to contend with the current 15 seconds which is shared among other popular smart contracts as well. There’s no doubt that Cryptokitties has become popular within a short time and raising the bar for gas auctioning in Ethereum.

With Ethereum protocol soon hitting its capacity, research into new scaling options to help the distributed technology scale is needed soon. But this scaling issue isn’t the only problem Ethereum protocol has to contend with.  Cryptokitties is just one viral game that hasn’t even spread across the tech universe. In fact, it was just launched a couple days ago (28th November)!

If Cryptokitties (one viral game) can slow down the entire Ethereum network, what will happen when the blockchain grows to accommodate real-world apps? Obviously, a long term solution is required. The Ethereum community can’t afford to have scaling challenges whenever a great smart contract hits the decentralized web.

#2: Divergent opinions about Ethereum growth

Just as is the case with the bitcoin scaling problem, we’re starting to see cracks in the Ethereum blockchain community as each side takes diametrically opposing sides about how to scale the network. For some time, bitcoin has been experiencing near or sometimes full blocks with transactions taking nearly 20 to 40 minutes to be validated on the blockchain.

Some Ethereum enthusiasts are already suggesting that miners should increase the so-called gas—a measure of computational effort in Ethereum—limit (just as is the case with bitcoin’s block size limit).  Ideally, the gas limit determines the kind of operations such as the addition of numbers, calculation of hashes or even sending transactions that you can compute in Ethereum.  Each operation has a fixed set of gas attached to it.

By setting the gas limit, we’ll be capping the maximum amount of gas which can be included in Ethereum block. With a maximum of gas in place, the block size and the speed of the network will be greatly be impaired. Ideally, this proposal is hinged on the philosophy that developers shouldn’t decide on the ideal gas limit but market actors such as the miners, the applications, and the investors.

As you are aware, the block size and speed of the network are at the core of Ethereum protocol. Altering any of them completely does away with Ethereum’s vision. Also, Ethereum miners are unlikely to agree to this proposal as it has its own undesirable effects. As of writing this, the Ethereum network uncle rate is already peaked at over 30% compared to the network DoS (Denial of Service) attacks.

This implies that at present, every third block gets orphaned. Now raising the gas limit is most likely going to make the current mining situation even worse. Without considerable enhancements on how large blocks will be processed using current implementations and decentralized in the network, increasing the gas limit isn’t feasible just yet.

While high-end systems will still be able to validate the heavy blocks within several 100 milliseconds, low-end systems are already gobbling up few seconds to validate their transactions and distribute the block.

#3: Other ICOs are at a risk

The Ethereum gas market is an unknown equation that allows users to increase gas and ensure that transactions such as the sale or breeding can take place in time. At present, Cryptokitties cautions users of keeping an eye on gas consumption, to avert high prices. An acutely high gas price would, in fact, expedite the transaction but make it flop completely.

The lackluster performance and gas speculations may make users abandon the Ethereum network completely. Bitcoin has been attracting speculative investments lately because of the unprecedented high prices that have been hovering north of $15,000. Now the presence of Cryptokitties and their network demands places hundreds of ICOs implementing their projects on Ethereum network at risk.

The specifics of the cryptographic computation may imply that smart contracts will never quite work to the levels anticipated by investors in the ICOs. This means that these ICOs are likely to fail because of the scaling challenges presented by Ethereum network.

Bottom Line

It’s no secret that Ethereum—and its smart contracts—has literally revolutionized applications. However, the launch of Cryptokitties has raised more controversies regarding the future of Ethereum protocol. The Ethereum protocol was once viewed as a perfect replacement for Bitcoin. But at these rates of network jamming, users are becoming cynical.

While I am not a futurist, one thing is certain: there are tell-tale signs of Ethereum fracture. Amidst all the hype and uncertainties about the scaling problem, it’s only proper for you to continue speculating before investing in Cryptokitties.

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