Get Ready for Ethereum Frontier Launch

Transcript

[Music] hello everyone how are youall doing great Welcome to our ethereum Meetup my name is Paul and I'm very excited as we are getting ready for ethereum Frontier I'm also joined by Constantine from ethereum he's joining us via Skype

constan yes I am okay great so yeah I assume you're just got on mute but just everybody know about you're also joining us from London what time is it in London right now conine um it's about midnight Midnight well I sure do appreciate you joining us so late at night no worries so um my presentation getting ready for the frontier runs about half an hour and uh conin will also uh uh also be showing us GPU mining as well which I'm really excited for and I'm really I can't wait to see what he has to show us for GPU mining uh we will leave time uh for questions but feel free to jump in with any questions as well during the presentation uh the presentation will also be available on YouTube so a link will be uh provided and and posted both

on Reddit and also on the Meetup the Meetup uh event as well in the comment section a link will be available for the slides as well so basically there's a lot of info here if you miss some of the info don't worry you can always go back to YouTube and slides as well so about e Toronto our website is meetup.com Toronto and Twitter is etherum Toronto so if you're interested in hosting an ethereum event assisting with organizing presenting a topic suggest topics for discussion just drop us a line at ethereum Tonto gmail.com even if your event is just as small as wanting four people wanting to meet with four other people in a restaurant and just chat

about etherum you'll free to just email me and and uh and I'll give you access to post an event to be meet up and that way we can build ethereum community here in Toronto that serves the ethereum community here in Toronto so we're going to cover why blockchains are useful uh decentralized excuse me decentralized apps that are currently under development uh we'll give you the latest news for the ethereum frontier launch also we're going to cover the transition from proof of work uh to proof of stake uh we'll cover the ethereum mining algorithm called eash we'll give you a quick mining update as well we'll show off the uh brand new ethereum network status

monitor so I've been I've been doing these presentations for about a year now and usually at the beginning of these presentations I'll ask the question what is decentralization so again I ask you what is decentralization anybody jump in with what is decentralization anybody at all you can be wrong it doesn't matter there's no there's not a test no Center no Center system a system without gate that's right single point of failure no single point of failure that's that's right this is starting to you this is start to read like the Wikipedia and decentralization that's exactly it decentralization is the the process by the process by which uh we we move away

from Central Authority so it's it's it's it's essentially cutting out the middle man the middle person so decentralization for example one example of a decentralized application is bitor that's actually one of the first decentralized apps and decentralization is one of one of the trends that are likely to um disrupt uh this as we know it in the years to come it's it's one of most dist one of the more disruptive Trends and it it will be it's already causing changes in our society so examples like like uh Uber that's that's a form of of partial decentralization um and you can see that that's already started to to disrupt you know the the taxi industry for example disintermediation is a useful

disintermediation that's right so dis intermediation why is it a beautiful word it's a beautiful tful word something that's actually quite horri that's right for in that position of power who are being muted and left helpless relevance it's it's going to be interesting to see what happens with decentralization with our society Bitcoin was one just one form of decentralization and what it was is it was just moving money from point A to point B so and and now we're starting to see more complicated forms of decentralization more sophisticated forms so that is that is where we're headed and that's why we're all here because we're excited about what it can offer and and and the change that it can can can can provide

us so very simp put for anybody doesn't know what a minut it's a PA it's a platform for decentralization and decentralized applications otherwise known as DS so again this is not a test what is a blockchain chain of blocks a chain of blocks indeed it is what is a blockchain a ledger a ledger a public Ledger a public Ledger what is a blockchain decentralized decentralized decentralized ledger right so what is a blockchain is it a is it a uh a triple entry public accounting Ledger is it a linked list is it is this just obscure distributed database is it a is a is it

a application of a state trans transition function well yes that's part of what is but how about this for definition wow comp now definition like this no have come from the mind of but what is what is the blockchain what is it it's a computer a world computer in which everyone can connect to and run programs programs that cannot be stopped these programs the output of these programs are stored essentially on the internet in the cloud forever or for a very at least a very very long time

these programs cannot be censored by a central Authority so the word in this definition the most important word is the word guarantee it's the word of guarantee that makes blockchains useful blockchains are useful because they provide they provide the following guarantees guarantee data Avail excuse me data guaranteed data availability the data is always there when you need it and it's it's never taken down guaranteed sharing of data stores so what this does it allows the aggregation of a lot of information puts it in the cloud and that data is

available for anybody to use and that can be used for other for other um applications including reputation and uh this information again cannot be modified unless it's modified cryptographically through the power and security of the blockchain it also provides guaranteed uptime very far into the future up time of 99.999999 that's 69 um uptime that's better than Google guaranteed transparency in the execution of code so once a once a program is run again it cannot be stopped it's guaranteed to run in the exact exact way that is specified row code cannot be inserted um Google cannot

insert code that can't see in there Apple cannot insert code that you cannot see in there NSA cannot insert code that you cannot see it's guaranteed to run exactly as specified guarantee communication between blockchain apps so apps can talk to each other decentrally with 100% reliability even if the underlying platform is 99.99999% reliable so these guarante actually allow for the creation of a web 3 a decentralized internet they give the found the the the groundwork or foundation for um base layer

services so decentralized apps that are built to rely on these Bas layer Services can plug into these Services these Services be because the efficiencies of the blockchain are are are are so efficient essentially if you need to pull a piece of data off the blockchain download a record a customer record or or download any other service download security for M multisig um Security on your app um download basically any kind of business logic that you need to the cost curve approach is near zero so the the these services are actually be behaved like a public good so again examples is identity so there's no need to trust Google Twitter

Facebook with your identity information it said that we're more and more getting um we're getting um more relying on decentralized service providers for identity and it's going to be more difficult to change your identity provider than it is to change your citizenship in in the future uh domain name registration is another application or or a decentralized based ler service um certificate validity information and data price feeds excuse me data feeds such as prices weather or other information so at this point in the presentation I would usually tell you what can be done with ethereum what I'm

going to tell you now is what is being done with ethereum uh one of the most exciting projects on the ethereum platform being released right now uh they're uh they're going to um actually they're actually entering Alpha right now it's called augur augur is a decentralized prediction Market uh it actually allows users to use the wisdom of the crowd to peer into in the future with a greater than 50% probability um you of course have heard of IBM and Samsung's joint venture with project Adept uh for the Internet of Things uh building blockchain logic into into devices in your home that are that can communicate to each other or build

uh build uh devices that can that actually uh can communicate to to each other through your automobile for example um so really sophisticated logic is now being being designed I think they had a video on here about a washing machine that would that would actually order and repair itself order um dishwashing detergent or or or order a repairer to get send repairment to fix itself all automatically No More Mount go uh with the decentralized exchange called ether X so there's no centralized Authority holding your private keys for your Bitcoin or your ether or your Doge my favorite Dogecoin um so you have that's you have that as a centralized

exchange um open source software cannot be shut down or stopped so you have a decentralized git in the form of ether git uh airlock which is which allows a store to automatically open or or at in the morning and and lock its doors at night uh Providence one of the most exciting projects on the platform Providence allows the supply chain of of a company to be transparent on the blockchain so if a company says that it uh is fair trade you can actually check its suppliers all the way back to where these coffee beans were sourced and actually see that it was indeed fair trade another application for example is conflict diamonds one can actually see that conflict that the diamonds are not

as a result of waret they were actually Source conflict free if you apply the transparence of the blockchain to it uh we fund which is a decentralized Kickstarter uh by the way we fund is uh the project of Nick dots he's in Toronto so um I'm looking forward to talking to him um Laro decentralized Uber so and the list goes on and on and on uh the ethereum platform is turning into an ecosystem that's supporting multiple adaps here's a list from uh George vony closer to Reddit the the uh topic was state of the daps so if you want to look at this list just do a search for state of the daps on the the medic and there's all sorts of things on here there's a social network there's a reputation

system um there's a there's an insurance decentralized app there's a there's a e dollar stable cryptocurrency app that can stabilize your your your your your dollars uh there's a slot machine de so the the ecosystem is actually starting to really develop as we approach the ethereum launch speaking of the ethereum launch um the ethereum launch is we should say etherum Frontier launch because ethereum Frontier launch is is approaching and it's going to it's going to be rolled out into four different phases so ethereum Frontier which I would describe as experimental um ethereum Frontier uh is the first phase the next phase is

Homestead and the phase after that is Serenity excuse me the phase after that is Metropolis and after that it's serenity so the idea is to do a phase launch because uh there will there will be bugs on the platform and and uh you want to actually make sure that it goes as as cleanly as possible uh to make sure that there's no showstopping bugs that puts uh that puts a lot of the um the users at risk so the intended audience for for home for Frontier is exchange exchangers and Miners And of course as you can see there are decentralized apps being built already for Homestead the intendent audience is the decentralized app

Builders the creators of those decentralized apps and for Metropolis it's dap users and uh and so at that point once Metropolis is released that's ethereum 1.0 or if you're iner and that's where you'll actually have a graphical user interface where you can download into your decentralized browser and one click and install decentralized apps so it's not going to be terribly userfriendly for Frontier and Homestead uh the interface is going to be command line and uh and so you know there's not going to be a pretty web interface face and just for the non-technical people at home if you don't know what a command line is this is command line it's not uh it's not user friendly for for just the

the non-technical audience um however uh the there will be Mist available for metropolis and serenity when that's launched for Frontier which is the pH coming up the way mining is going to be working it's going to be working on proof of work and as well uh mining is going to be proof of work for Homestead and for Metropolis now there's going to be a switch from proof of work to proof of stake and we'll talk about that in a few minutes for shity specifically for Frontier proof of work will be done proof of work with checkpointing now what checkpointing is is a snapshot will be taking of the whole blockchain the whole state of the network if there's a major showstopping technical problem uh

the network uh itself might be rolled back to that point when that Snapchat was was taken and again that Snapchat is taking every every 24 hours uh now uh there will be no 24-hour checkpointing for the future phases uh that's just a that's just a security precaution as we enter Frontier which is early in the game uh and because we're further in the game uh the mining rate will only be 10% for Frontier so that's about 0.59 ether per block and the blocks right now are ranging between 3 and 8 Seconds depending on on on how many miners are on a network now the mining rate will go to uh will go to 5.9 ether per block um

once homestad is released and will continue of course there's no mining in because it's proof of stake so if you have on Frontier if you've downloaded the client and you have ether inside your wallet in the frontier client um that balance will carry over when uh when home is launched and it will carry and all balances will be carried over all wall balances will be carried over um in the four phases however um daps that hold balances so contracts can also hold balances uh that will not carry over from Frontier to when Homestead is launched that will reset to zero so for example if there's a decentralized exchange that's on Frontier and um if it's like a if it's like a a contract

that automatically changes one one currenc to another any currency inside that contract will reset to zero so again just to reiterate um everything except the count balances will be erased uh once Homestead is launched so once Frontier is over uh Bitcoin exchanges will be running at launch and uh we'll be up and running and you can one can trade either for Bitcoin but there will be that 24hour checkpointing so official exchanges will actually use checkpointing service to protect the traded assets um from potential blockchain roll backs so if anybody sends ether to an exchange you may need to wait 24 hours for your deposit to be to be accepted once that checkpoint if

you has happened before you can get Bitcoin for E go from ether to bitcoin for example so um for anybody wondering when Frontier will happen here's the latest word from vitalic buin and essentially what he's saying he's saying that we're waiting for uh GPU miners to be easier to install easier to use and be uh available on more platforms and and easier to use on on more platforms um also we're waiting for a large percentage of people who use the network to use GPU Miners And so uh once that happens once that gets to a satisfactory level and once the the mining clients get to a satisfactory level then there will be a 48 hour notice when ethereum

Frontier launches um so for those that want to dive into Frontier versus e ethereum Frontier guide um the link again will be on YouTube in the slides and it's also an ethereum blog but just very simply it's ethereum.org um there is a section uh called caveats and disclaimer that would basically warn users that this is a frontier I mean it is a high-risk environment for users and uh and there maybe possible bugs so um you you may want to wait for a future release if you're a user who's not comfortable with

that so if you bought ether during for sale last year uh and and uh I believe 60 million ether approximately was sold last year um ether purchase during The Ether sale last year will be redeemable at the frontier launch so instructions to redeem ether will be made available at the frontier launch and Redemption will be done through the command line as again there's no goey in the frontier release so if you're not comfortable with the command line um then it it's suggested that you wait for a poin and click goey to be available before redeeming your your ether before you know redeeming your your your your Json

file so the next phase Homestead um once ethereum launches uh the next phase will be Homestead so if anybody wanted to see a progress on Homestead really simple or any other ethereum ethereum uh uh ethereum uh phase just Google ethereum Milestones not miles stones and as we can see we are 96% complete for the front for Frontier launch so this will go to 100% And then the the homestead progress bar will start filling from zero to 100% so again just remember that Google phrase you want to see what's going on where we are with the project so for Metropolis this is your ethereum

1.0 your your your actual 1.0 launch um this is an example of what the GUI might look like so one if can actually send money um there's a minor in this in this guy there's actually a whisper chat tap that lets you centrally communicate with other users anonymously and uh so this is just a a a concept right now might look different a far different in the future versus actually a website that you can actually punch in your decentralized um web3 address that .f to visit a website similar to how tour works um where you do have you you know you do have that decentralized Network to uh protect the the data um here's an example of what it

might look like to redeem uh your ether that was bought during The Ether sale uh so if you can see there's an M mfn backup that uses Shamir secret sh sh secret sharing and uh there's even a step as you can see the next step here is to import your pre-sell ether so the next phase pity transitioning from proof of work to proof of stake proof of work um it's very wasteful it wastes a lot of electricity and eventually it uses it actually leads to mining centralization which means that only a few in the in the space actually are getting the mining reward that supports to network

uh and processes transactions so um ethereum could not begin with proof of stake it had to start with proof of work however it is planning to transition to proof of stake and the way it's going to do this well this is just one possible way this could change in the future this just one possible candidate but the way it's going to do it is through a decentralized app called the bomb so the way the bomb works is there's only three people on the planet that hold the keys to arm the bomb and that's the core developers of bethereum metallic Jeff or or Gavin and if two out of three of these key holders submit their keys the bomb activates and it activates with a

onee countdown and uh you know what let's just go straight to GitHub since this is all open source and anybody can see the the information on GitHub the bomb here we go again this is one possible solution this might change in the future so what happens when the bomb starts counting down uh there are so many miners there'll be like hundreds of miners or thousands of miners mining their ethereum oh by the way this whole decentralized app only 56 lines of code so it shows you just how powerful these uh these decentralized apps are and how elegant uh you can you can you can create allant Le they can be created but once the the bomb starts Counting

there'll be hundreds or thousands of miners on there uh once the countdown is reached either we go off or it will not go off if it goes off the bomb will actually flood the old proof of work network with vast swaps of ethereum precisely uh two to the exponent 150 ether and that will essentially make mining useless on the old proof of work Network and ether will only have value on the new proof of stake for now when the week when the timer counts down to one week um it will it will it will only go off it will only release that much ether if the following two conditions are true the first condition is when the

bomb starts going counting down anybody that holds ether May basically put their ether into escrow think of a button in your ether client that says Place into escrow and uh if enough people do that specifically if uh if onethird of the people holding ether Place uh their ether into escrow oneir of excuse me one3 uh of the where n is one third of the number of minors placed your ether asro um and the other condition is if the total amount of ether placed to Escrow is 3 million then once the bomb the bomb uh the bomb counts off The Ether will be released and that will

essentially execute a hard Fork to a proof of stake chain so that's a bomb and just for the YouTube audience here's the original text off Reddit that explains it and that's that's essentially how the launch will work so at this point I like to just just while we're on ethereum launch I like to cover off any questions on the etherum launch yes what by prej amount Avil everybody else massive so that set off yeah good question so when during The Ether sale um 60 approximately 60 I

want say 59 million ether was sold and uh of that 59 uh 20% was was was was uh was held uh the 10% goes to the early contributors who contributed to the project for the first six months of its Inception since November of 2014 is that right excuse me 13 and the other 10% is actually held by um the etherum foundation for the support and development of the protocol um so how that will interact with staking well there's about 60 contributors so they'll get that that uh 10% will be split among 60 people uh for that first part for the

second part that's H by ethereum um so not sure how that's going to interact with the proof of State uh and obviously if you're holding if the foundation is holding 10% um they'll have to stake that the foundation will have to stake that to keep getting transaction fees on the on the on the on the the network so but I can tell you that uh want jump in or yeah there's quite a few details here but the 99.99% or so is held for the for the contributors those people who started from November 2013 and onwards until the sale and then after that there's 10% held for some for rewards for the contributions to code for rewards for the finding bugs and 1.8 more details on that one is help

just for the foundation itself holds at least that much to help keep operations going for the platform because we still have to build and fund like building a homestead metropolis and serenity so the original crowd so gets us set you to Frontier and a little bit more we still need to fund th to going forward and that's what that's set aside for so really the success of network hope the price of ether doesn't has to do decent um now that the Network's actually being successful at this point and then we keep it going so it's it's not a pre- mindset that like as you're asking where we've had in the past with cryptocurrencies where developers will take like a significant portion and they're going to reap incredible benefits from it this is extremely decentralized nobody holds a vast amount from from the team it's well proportion

across all contributors and the foundation Foundation itself are both the most at this point and that's purely that's available online show it's just going go towards help helping develop the system any other questions on the launch this I question Rel to what you were saying Ethan so the amount that was sold last year in the crowd sale what percent of say the first Year's money supply does that represent or would be the of this 10 20% of total of 60 million would be of was sold well that's what we go to the the so what we just talking about no no no but what I mean is like say when ethereum when Frontier launches there's x amount of money supply like x amount of ether in circulation what

percentage of that was sold in the pre-sale last year the uh well in pre-sale sold 60 million every ether yeah 60 million sold on day one how many ether exist or just the 6 uh well actually let's break out our calculator here um the amount of ether that'll exist on day one is cuz that'll give you an idea what PR I mean it's like axy for pre so we'll say 59 we'll say 1 two 3 four 5 six I'm just using odd numbers here um 60 million um you actually divide that by 08 and this is what the money supply looks like 75 million and uh then uh now of that 75 million that's essentially

what you're looking at for day one money supply when sping operations begin very very approximately okay but then but every day there's a certain increment in the majority is held by people who purchased it during their opening oh okay crowd but what I mean is like for people who didn't purchase in day one there's still like 15 million money supply that could be well there's a the inflation rate is is 5.9 ether per block that's available to Miners And so that money supply will and that's an inflation rate of approximately 24% but that will vary depending on depending on on the mining condition inflation only the original amount to so over time it'll be a proportionally l right so like I mean it's not because I know like

there's other points where like on day one like most of it just gone right but this is sounds like you know if you wanted to buy something you could buy something even on day one oh yeah absolutely yeah there'll be exchanges up and running if you want to go for Bitcoin ether you can buy ether or you can set up your minor or simp your minor want as many people as possible gpus like don't not specialize Hardware in this case you just get your graphics C and hope get a little bit deeper that way but there's a bit of space for that right because there's definitely like other points that it's just like the entire thing is gone yeah in theale contract it has a a show the inflation rate of the new Supply and it's a fixed amount and the Decay over time oh okay

yeah it says constant linear inflation so the inflation yeah you're right the inflation rate does stick you over time thanks vict any other questions on the launch how much do you know theal there is five on a list I not have the list of five right now there might be more there might be more but George halum has confirmed five will be available um at least so and then you have the ether X I believe as well which will be available I don't know and I think that'll be made public like once the launch comes out so they'll be very keen to tell you yeah they'll tell you by or you through here um how How Do U how do the decentral app deter how many e they

need to execute it's fairly it's fairly complicated the yellow paper has the precise ether per calculation um so if you Google ethereum yellow paper it actually will tell you every different type of calculation how much it will cost so if you want to store x amount of btes in the blockchain it will cost this much um e I'm not sure ether is a unit use I think it's some subunit like way or some over unit um but the yellow paper has a full details for that so okay so I guess that's all the questions for etherum lunch on to the most exciting topic called mining but before we talk about mining let's just quickly uh plug uh dap list sorry excuse me dap list is by the way another

another um another uh email email emailing list I want to mention um ether dispatch.com basically it's a really good newsletter so you just sign up for it and you get curated information every week to stay up the DAT with the project five do a research yourself so I subscribe to it I highly recommend it da list is yes are there archives available yes there are actually let's go and Google um you don't have to sign up for actually if you do um ether dispatch oopsie ether dispatch here we go here's all the archives we're on newsletter number three so you don't have to sign up for you can just Google it and and you can go and visit previous issues as well for

Thea for the dispatch new letter so past issues are here it's really great I highly recommend oh ver up to issue number five already I highly recommend it it's a really great source for information it's actually done by on Reddit forms it's done by hel hel craft he's out of Montreal he's just uh he's just really passionate about ethereum so um but yeah dap list as well if you Google ethereum dap list it also uh it's it's Run by George halam and uh ethereum dap list I also recommend this this uh this this is for Dev of this is more meant for developers d.net is the actual website um so it's how recommend if your developer want information on it so so mining let's talk to a local Miner so um

Anthony has been mining since day one um once don't you come up here and and I'll give you I'll just ask you some questions about mining so well thank you for to do this Anthony cross y give so how' you get into into mining what made you want to start mining uh I felt like I stood a chance unlik Bitcoin because I joined uh I joined Bitcoin uh Bitcoin much later so I you know it was no point at the time when when I joined so ethereum looked like it was uh early enough um so when I saw the the post by vitalic on on this OIC um period of time I thought I'd give it a shot so I started by installing uh the go client

on my machine on on the docker container I don't know if know what darkware is so allows you to kind of like isolate uh like this is really Alpha kind a software so I don't know if I I would trust it with my my my personal machine so I put that in that darker container and the the hash rate was very very low even even for a beginning basically I wasn't getting anything so uh so I looked up online and and I realized that well uh even though gpus were were not quite joining the network yet it was quickly not going to be possible to to to mine just with a CPU so I I thought about it and I recycled an old machine that I had and I got myself a a a somewhat decent uh GPU card which was an

AMD and I never got it to work actually I did I did a couple of days ago but but I never actually got it to work uh on time for it to be actually useful so that was kind of wasted that's F I'll recycle it for like video games uh so what I thought is I would try an Amazon instance like they have some Amazon instances with g gpus on them uh I believe the biggest one have four gpus uh four Nvidia gpus on them so uh it's not uh cheap it's it's uh I forgot the exact rate I think maybe $3 an hour so so it was more like uh a way for me to try it out um and and it took me quite some time to make it work because you

need to combine the go client and the C++ client and uh well from my personal EXP experience I would say that the go client is much much more reliable uh now I don't know how many C++ they have developers they have uh it's also in my I'm a developer myself so I think uh it it is probably much harder to develop ethereum with C++ than it is we go uh so that might just be the reason um so like right now I've managed to make some of the Nvidia gpus on on the Amazon instances uh mine and uh so I managed to mine a few blocks of that that Olympic reward thing which I really hope is going to actually be given out I'm sure

I'm sure it will um at at this very point I I turned off the Amazon instance because obviously this was costing me uh but I'm I'm actually keeping the uh AMD machine that I've managed to to to to uh to run so uh I'm actually mining for free basically because I don't think there's any official reward that's promised on that one but but it's nice to be to be to be just part of the network um otherwise like so if anyone's interested in trying to mine uh I can try and point you to the docs there's plenty of of docs on the especially on the on the Forum there's uh stepan T who's actually pretty pretty active on it he's uh he's detailed all the steps that one needs to do I I don't know about the windows mining things part of things but the the uh Ubuntu part of

things is is actually uh you have to be very very uh careful with what you do especially with the AMD gpus um so yeah like if anyone has questions afterwards I'll GL the answer that I'll time one question for or two questions question someone else just wonder what were the the Nvidia Amazon instances like are they for graphical rendering and do you know if there's anyone just thinking I never thought what can someone tried to like get a render from like I know there's render farm that you can rent for like rendering movies and rendering like in the graphic design you mean what do you think they're actually intended for yeah like what are they in maybe cryptocurrency maybe someone at Amazon thought oh you know what like

there's a lot of cryptocurrency mining out there and like like it's definitely not economically worth it like unless you're very bullish on might be wor looking into render Farms graic cards rering for an hour few hours maybe well out of curiosity I also looked at Google engine which is the the equivalent basically on Amazon ec2 and they they they also offer like plenty of different machines but they don't have a GPU so uh I don't know I mean they don't have GPU specific machines uh whereas Amazon has two kind basically uh but again very expensive so unless you're very bullish on ether uh but I mean it might be one

last question a question yeah so so you you didn't try on window Mach uh no I don't know Windows um CPU mining worked on Windows yeah other need to be under well I'm sure it did because the the go client was working pretty smoothly so like like the only thing you had to do was like start get was mine option and by default it would go to your GP CPU yeah I really really hope that they start they they don't start Frontier without the GPU mining on yeah because I think it would be a big mistake thank you so much it's good to have that thank you okay so just a an update on mining

uh the mining algorithm is called eash and eash the mining algorithm is a mix of Hashimoto by thsh draia and Dagger by metallic butterin uh I I used to say that the block time as 12 seconds is actually in reality it's closer to three to eight between 3 seconds and 8 seconds and it decreases with difficulty U mining pools will not be available at launch and uh so it's up to you to configure your to configure your minor and mine individually um so the features it's Asic resistant so it works on memory bandwidth yes what does that mean decrease with increase in difficulty get we're finding good question we're finding that the spec says 12 seconds what uh what people are finding however

is on the actual Network as the difficulty goes up as the hash goes up the block the block is actually decreasing and actually uh uh uh you know uh the team is looking into into that as well so but empirically somewhere between 3 and 8 seconds is the block time is so it's sped up and uh so by like fine verifiable I mean it the uh the any light cine uh can download uh the whole the the whole um what it needs to download in about 40 seconds and for in order to actually mine uh the m and get mining rewards The Miner needs to download the full blockchain which can take a fairly long time so this is just this just for

YouTube It's I'm just going to skip it for time um but uh that's basically what it is it's AIC resistant and uh it it's light client verifiable downloads the light client download it very quickly the algorithm and uh you need to download the full chain uh so just very quickly because Constantine is going to cover GPU mining uh at this stage I'll say that it requires use of the command line if you want the most upto-date information on mining just hit the Moni forms on forms. ethereum.org and uh you would recommended to have a 2 gbyte uh memory for your for your for your mind for your uh graphics card um as it's downloading a lot of information it's

called the the dag the directed The a hlic graph um and uh also uh AMD gpus will be faster than uh than nided gpus uh because the implementation is written in something called open CL um I want to just point out this really Nifty website as well uh called ether apps. info hopefully will come up with no problem um I was having trouble loading the website today but essentially if you go to Ether apps. info you can see the current mining statistics and again it's not really loading up really quickly so I'll have to just get to the point the point is is if you want mining statistics is a great website also the second point is that mining already because there's real

There's real ether involved in mining even on the Olympic test Network that's getting very competitive I took the screen capture on May 18th and the top uh the top three says are getting 50% of the mining rewards I think it's not that bad I think currently it's about the top six are getting 50% of mining WS but it just goes to show you how competitive it's really getting and how um really mining Farms are starting to enter into the mix so I took a screenshot off Reddit here is somebody that actually took um one took their computer and hooked up 27 graphics cards to their computer uh and is basically mining a mining Farm uh at that time he was uh getting 20% of the mining reward and uh

now if you consider how much ether was getting my calculations show that he was getting 1,000 um ether um every day which is it's a lot of ether um for only 13 bucks per day um so it's getting very competitive um the benefits of skill are starting to come into and you starting to get these these GPU these multiple GPU setups as well uh finally the network stats. stats. fd.com that's where you want to go to get your latest mining statistics um it shows the block time here as well as the hash rate and as well as the difficulty it it was 1.2 GHz it's fallen off to 900 um but yeah it even includes

a Nifty map so there's somebody here in South South Africa mining uh South America a bunch of people in Canada and USA and Europe so again stats. is where you go to get the latest activity on the network and there's even nodes that are listed here uh and you can even sort it by by mining rate now not everybody who's money actually makes your information available to this website it's it's it's it's optional it's not required to post your note to this website so if you're interested in more knowing more about the ethereum project you can simply uh Google ethereum uh Toronto and that will get you our Meetup um on

up.com uh the official website for ethereum is ethereum.org and if you're a developer interested in knowing more about development you can also go to fd.com uh check out the ethereum blog the ethereum forums the community on Reddit at R etherum and follow the eum project at etherum project on Twitter uh one really useful bit of information is this link here bit.ly rcore theem it's the easiest way to actually to actually get into V RC Channel and the RC channels is pound ethereum for the general chat and pound ethereum hyen Dev for developer chat so that's our presentation um thank you very

much Constantine are you are you there with us are you still there thank that was a long presentation so thank you for hanging in with us I think it's like 1: a.m. in London right now yeah well fun the station uh well Anthony uh is available as well to answer any questions as well but he's going to take us through a GPU GPU setup and but any quick questions right now uh before we continue with Anthony's presentation Ethan you had a question or by the way I should say if anybody wants to go to wash you my wife has the uh the card and she'll take you down so yes what was the connection between e and gas The Ether and gas yes

the quick the quick quickest answer it's very complicated and I wouldn't be the best version to ask but the actual answer is actually in the ethereum yellow paper um I like to know the the the answer as well um maybe you can help me out with that there um Constantine yeah sure was question what is the connection between ethereum sorry ether and gas what's the relation between ether and so um um there's a couple of terms you need to understand here so gas uh gas price and ether um we smart contract um smart contract functions every function once compell down to codes of assem right

language um every opal costs a certain number of gas units um which depends on how many CPU cyes uh your Compu needs to spend um that up code or how much memory or dis Bas going to take that's a constant amount so say m store which is a command to write something you know this dat into your memory costs 3,000 gas yeah it's a constant amount it's never going to change now every transaction has estimated gas amount so that is the amount of that's all your UPS put together uh expressed in terms of gas units this is how much gas is

going to cost you to projection right so next thing is a gas price is the variable which is the network estimated uh amount of ether that you pay for unit of gas yeah this is a variable so if your M storeand cost you 3,000 um gas units and gas rate is gas price sorry the gas price is one we for gas then executing a transaction so executing op will cost you 3,000 e and it's a really hypothetical example like one gas going to cost but um

question any other questions on gas price okay any other questions actually how is it set how's how's gas price set there cone so um question unlik guas is basically find in COD is kind of hardcoded gas Dev is Ved on by the miners so miners estimates they estimate what the current gas price should be and they um they set that for every okay so but based on what criteria um market economy um it's almost like an option so I say I'm going

to you know I want to go transaction this um gas price and uh I'm I'm saying that I'm going to comp at a cheaper gas price so we kind know um we um almost want an option on who's going to take transaction and cash price so how is that different than like with Bitcoin like for example when you do a Bitcoin transaction the cheapest minor you know usually the person who's willing to do it quickest for the lowest price generally does the transaction is it same um right now also the transact so send transaction can specify the gas price so you can you can either use the default

which is the current default gas price in nbook or you can set okay great thanks here Constantine any other questions on the ethereum launch generally speaking okay super um an uh sorry um const I'm Gonna Let You Go ahead for your presentation and uh I'm gonna I'm gonna basically have you share your screen all so why just tell us what what what's uh what you're demoing right so uh I mean we covered um so you covered most

of the theory anyway so I reckon My Demo is going to be pretty quick um so um what I'm going to show you is um some steps you need to um some steps you need to take to install the um go client um then uh the minor package um the two things are separate uh and how to get them to work together now the process pretty trivial so um I have to say my um my machine was not part ful enough for mining so I had to use a an ec2 um Amazon instance uh with the GPU

card set up and I've used um I used the default uh abun 14.04 for this which is very minimal install of bunu and installation on this platform was pretty straightforward the only thing I had problems with with drivers um what I found the only thing you actually need to do to set up your drivers on uh abun on minimal obuntu 14.04 is you need to install a package called um uh it's called Linux uh generic

yeah um so yeah you just basically install like any other any other package uh sud sudo upat install uh Linux generic and don't forget to reboot your machine so uh s of reboot and after that you'll have um your default no uvi drivers um and install in order to install Cuda drivers you just go to uh the Cuda website just basically Google Cuda drivers yeah um you're going to get to this page uh which just lists your um your drivers for different platforms uh the one we're looking at is a buun 4 16.04 I recommend here getting either a local Deb package or a um or a

network installer um if you're feeling adventurous get the one one but it's um it's yeah I there's not there's no point doing this uh you using the one package lot is a lot more involved so just get yourself a um local installer or a network installer and you should be fine right so um yeah um that should get you up and running with the drivers you can always check them with uh mod probe or uh just get uh just download the eash uh the F Miner package and check that this works so in order to install the go

client um once again it's a very simple process um there has instructions in oh that's CPP um so there's instructions in uh the go ethereum Wiki so you navigate this page so the GitHub repository go to wiki um here is in um installing ethereum um and installation instructions for Linux Ubuntu and boom um there's two options here so one is installing from PPA uh another one is building from Source uh and you um either option is fine

but um from my just my personal experience is that um installing from Source usually just building from source is usually a lot more reliable uh and again it's just three steps so just clone the repository uh install the dependencies um CD into the repository and uh sorry CD into into the directory and do make gu and it should be uh and that should be that um so right now I got I have my uh go ethereum installed in the go ethereum directory we can run it by uh running the local gu script B build bin gu you need to supply the RPC

option um that's Json RPC um setting that allows external components to connect to your client programmatically and exchange data with it this is required for uh your F minor package from CBP ethereum to work uh to be able to communicate with G oh uh one more thing you probably want to run it with console as well um console the console setting allows you to interactively um so allows you to interact with with with a running client so you can issue commands in JavaScript syntax um and just sort of gives you a little bit more

control um another thing is that the first time the first time you run your go client needs to catch up on the blockchain and that might take a while I mean we're talking like three maybe four hours uh so right now my client is a little bit a little bit behind um so my current block is 447,000 466 uh what's the latest on stats um 447 468 yeah so I was just two blocks behind um right uh the next thing you'll needs

to install IS F minor um it's um it's the mining package built part of CBP ethereum a C++ client uh so you know to install it unlike with the goal client it's better well certainly easier to use uh a um an PPA so use I would I would definitely recommend using the um develop version it's a little bit more up to date um maybe about a month more up to dates which is um which is like eternity in ethereum terms um so um yeah add all

your repositories uh run sud the up update uh that should add all of the CPP etherum repositories to your um local list of upet repositories uh and then you can install components so you don't you can install Studio opat install CPP ethereum which will install everything that that there is in CPP so Al zero f um um whatever else is there um but in reality if you just want to get the minor to work you just need F minor so your command would look like sudo up get install um uh F minor yeah uh and that should

install F minor um on on your on your system check that it works and also Benchmark the system uh you can run F minor sorry why would want Benchmark well firstly it allows you to test whether your system is working whether a mine is actually working because if there's any problems with drivers you will know but yeah it will tell you uh and secondly it it just it just tells you what um how um how well your system can mine yeah simple terms sorry mentioned know that towards like clients being an option but presumably

developers need to download the whole thing it's what what are you mentioned it take like three or four hours to download the blockchain so far is that it's like first couple weeks like is it going to be like how intense is that expected to continue at that rate for that developers will need to You Know download that much um well it's certainly not going to get less than that I mean it's the blockchain right so if you want to run a full client you need to download the blockchain uh same is true for Bitcoin for Litecoin and any any other blockchain um any any other blockchain based technology right um I think it'll be it'll become it may

become a little bit faster once Network grows uh because one one of the reasons why it's sort sort of sort of slowish at the moment is that uh the network is not wide enough so there's not enough nodes geographically located near me so I would download it faster from them I mean it's same logic that applies to torans right um anyway let's try and Benchmark the system so yeah as you can see it tells me sorry uh by the way just for the dog yes um dog is a u big uh file that is used for mining so you might have

heard that uh ethereum mining is memory hard uh basically what that means is that uh the process of mining requires a very large file that's resides in your memory and constantly grows and it parts of that file are used for generating um generating block hashes that are validated against uh difficulty rules and other rules um and uh one important thing you need to know about the zag file is that it's one gigabyte in size and is growing so your GPU card needs to be um needs to have at least two gigabytes of um of ram so of onard memory um this is this is the reason why

my laptop's card was not good enough for for mining um I have just one 1 gig so um yeah and it also takes some time to generate the deck file um yeah so um as you can see my Benchmark run successfully uh my hash rate is at about six uh six Mega hates a second um it's all right it's not great um the main reason why it's not great is that because I'm using Nvidia cards and um it just so happens that AMD cars are a lot better suited for mining right um Anya how much what cash you

give the AMD um well it depends it depends on the particular card but um some people say that uh one really cost- effective card is AMD r9290 X or something like that and it gives you about 24 meah hates a second right that's that's quite a yeah um there are more powerful cards produced by both NV and AMD but this one is sort of know it's a good uh it's a good value right um right um actually let's try and connect this thing to uh to guess so uh the command is almost the same um dasg but no- M

option and hopefully we're going to see this thing actually doing something um hopefully mining so loading dag file um grabbing dag and yep so um now as you can see it's getting uh work packages from G um via the RPC and it's Manning at rate of six mahes yeah so um my F minor uh F Miner uh programs submit um M blocks to um uh to G um for validation uh and it receives the um

work packages from it uh VI the RPC so that's why you need this sort of uh programmatic channel of communication um and if you leave this uh setup running long enough uh it's definitely going to mine your block um just before the presentation I managed to mine one um even with this not very powerful GPU card um so yeah are you going to keep this instance to cash in your your block sorry say again to keep this instance to cash in your block uh when for your lodges because I know any blocks that are mind you can actually you get rewarded even on on the Olympic test net um yeah yeah um so yeah once you've mined something and the blog got

accepted by the network uh you will yeah you will get reward well actually um um the only reward you'll get at the moment is uh test net ether which isn't worth anything um during the Olympic phase uh there was a reward of half an ether per block from Block M but um I think the this this phase of Olympic ended with block number 400,000 okay actually ansers question that one of us had um Anthony was wondering whether or not the block would continue past 400,000 so I guess the word is w you pass for th000 um well um the latest news I've heard were that um this this phase was was running up until

400,000 uh blockheight and we are at 440 or something like that so I think I mean unless somebody stated stated otherwise somewhere um I think you're not getting you're not going to get a new rewards at this at this stage so uh you'll have to wait until until Frontier so basically if you have test you can use it to spam the network and get rewards through the Olympic program that's oh yeah sure I mean yeah you can do that I mean yeah sorry I should have mentioned that if you manage to break the network uh well well done yeah you you'll get uh up to 2500 ether I think 5,000 e you man network too so so it's still worth something 5,000 all right yeah yeah so

very good so and there it is it's mining color yeah lots of colors um so yeah I think well it's this part I should ask like is there any is that any questions yeah any questions at this point about this is how you set up a minor A to Z on GPU it's obviously complicated for the aage person but this how it's like Vegas it's Vegas ether is there is there spot machine going on is there spot machine you're in well man yeah you can say so it's uh it's just one big slot machine it's whole

thing um let's check yeah 778 mahes a second um the highest the highest I've seen in the last um s couple weeks was 1.3 G hates um so went down I think it went down because uh we stopped we stopped rewarding uh for blocks um so yeah there's there's little Point left people just you know spinning their Hardware uh paying paying electricity bills for mining test net ether yeah I think at this point people are are mining just to get test net for the contest that's still going on for for for for OIC so yeah you questions for

last so what kind of computer what kind of computer you using to run this mining um it's a um well as I mentioned it's an AWS instance um but you need a very simple terms what is an AWS instance um well AWS is Amazon um Cloud Computing Services um web services uh it's um it's a platform as a service um Service uh that allows you to launch instances um sorry um virtual private uh VPS virtual private Services

servers uh which have installs of uh whatever you whatever you choice of operating system so you can run aunu or R Hat Linux actually any flavor of Linux or even Windows um you can um basically you're renting hardware and software to run your applications or servers or no um whatever you have there basically renting computer space in the cloud yeah com in the back saying it's not worth mining on aw my my tech is is not it's not worth I

mean if you're playing if you're just playing with this technology then yeah sure but by all means but I doubt that six um um so the um the current hash rate you get from one instance of G2 uh that's that's the one you looking for this one as GPU um um GPU Hardware uh so you get six Mega hates from it which isn't uh a lot and you paying 60 UH 60 cents an hour for it say but ultimately I guess what what this work now will be when ether

actually gets a price in the marketplace because right now being done you don't know what is worth so yeah I mean it's impossible to I mean if you if you if you ask me like is it is going to be profitable or not to mine with uh gpus on AWS or you know with this or that card and I I it's it's impossible to know that because there's um too many variables uh it's really not worth bu bit yeah true yeah don't go don't go and buy 27 G worth of free

AWS if you're you're start from IBM you can do a years worth of of free years right that that free computer power just sit there in mind get something for nothing nice [Laughter]

seen movie any other questions for C while we have here it's you know well let's give him a hand thank you very much thank you apprciate you time like 13 so thank you so much yeah no no no problem kids time okay well I guess that wraps it up for uh for for our event tonight so I'll let you go there there con thanks again so much all right thank you yeah thanks for listening take care byebye cheers byebye