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Questions tagged [economics]

all questions regarding the economical systems and e-commerce

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Use of Ethereum and the circumventing of economic sanctions

Say if one stays in a state that is heavily sanctioned, e.g., north korea, iran and these states do not have crypto exchanges, how can one leverage etheruem to create economic transaction mechanism in ...
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3answers
26 views

Who pays the expenses of running all contract codes again and again?

As far as I understand, each new node that downloads the blockchain must run all code in all contracts from the beginning until the present time (is this correct?). This means that a contract in an ...
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2answers
66 views

Casper FFG slashed deposits distribution?

How is the slashed funds distributed upon failing to follow the requirements as a validator?
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1answer
64 views

Why are ICO startups claiming to build blockchains with different functionality, but yet are using Ethereum?

I've been researching the top blockchain startups by market cap on https://etherscan.io/tokens. For example: EOS (EOS) Tronix (TRX) VeChain (VEN) etc. And I'm just not understanding what they ...
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0answers
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Can Ethereum be successful in a world where EOS meets all of its promises? Why/Why Not? [closed]

As the title states, the EOS platform looks incredibly promising, but looking at the recent blog posts the maximum 6k transactions per second is much less than the promised 100k+ per second. I'm aware ...
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1answer
211 views

What is the exact issuance model for ETH?

How is the number of ETH per block determined? My initial impression was that ETH blocks produce 5 ETH per 15 seconds but I cannot find any exact numbers or methodology regarding the emission schedule....
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2answers
160 views

What are the impacts of the Ethereum pre-sale, pyramidal wealth distribution, and mysterious lack of concern within a decentralized financial system? [closed]

As an Ethereum developer, one facet of it I have never understood is its unequal wealth distribution. Unequal wealth distribution makes fees more expensive for everyone because wealth is concentrated ...
3
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1answer
92 views

Link between ICO, Mining and the Technology platform

this is not a question about markets or how to mine, but rather about the lifecycle of a coin on the platform. WHY would anyone purchase coins on an ICO? Is the aim to pick an ICO that might just hit ...
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2answers
1k views

Has it been more profitable to mine or buy Ethereum?

Given all the posts speculating about future performance of Ethereum, I figured I'd ask and answer a question about past performance: Historically, would I have ended up with more Ethereum if I had ...
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3answers
1k views

Why does the Ethereum project have a coin?

As I understand, the Ethereum project provides an innovative technology for allowing developers to build distributed apps that can insert smart contracts in their blockchain and execute these on their ...
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1answer
682 views

Casper: will you need to buy the right to be a validator or will it be free?

According to this document: https://docs.google.com/document/d/1Xf_iHGI51Lp6nVHPZo0SdUw60-NA6YJUvk2s-eYaxLE citation 1: maxDeposit - the maximum deposit allowed to become a proof of stake ...
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2answers
2k views

Ethereum POS economics question about gravitating all ether supply to stake

Please, dispel my doubts about POS, miners rewards and too strong incentives to participate in it that could lead to almost total supply of ether locked in stake. So, we have: Et - total Ether ...
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2answers
2k views

What gives ether it's intrinsic value? [duplicate]

Trying to understand how ethereum and blockchain work. I keep hearing that miners are needed to do the computations to unlock a block (don't know if that's the correct term). My question is this: ...
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2answers
112 views

State of knowledge / research directions academic paper

The SoK paper by Bonneau et al provides a good overview of the state of knowledge (as of 2015) and research directions for Bitcoin. Is there anything similar for Ethereum?
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3answers
785 views

I argue that Proof Of Stake will consolidate ether holdings rather than decentralize them. Am I wrong? [closed]

I am skeptical of the argument that proof-of-stake will decentralize ownership. The argument in favour of it is that POS has lower capital requirements, so easier entry to the market. That makes sense,...
5
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4answers
2k views

If everyone runs the same transaction, why does only the miner get gas?

If I understand Ethereum correctly, the result of a transaction is known and verified by everyone because everyone runs the code using their own copy of the blockchain. If that is indeed the case, why ...
2
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1answer
252 views

Ethereum elevator pitch [duplicate]

What exactly is Ethereum? It's weird that for such a thing as Ethereum there has not yet been a question asked that would suit a lot of new comers. The reason I ask is because I have far from a solid ...
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0answers
252 views

How is transaction finality correlated with transacted amount?

It was argued by Vitalik Buterin that transaction security can be a function of the amount the transaction carries. This is because of the economics of attacks. How many block confirmations would you ...
5
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1answer
111 views

Please help define “public economic consensus” used by Vitalik Buterin

In a recent paper titled, "Ethereum Platform Review: Opportunities and Challenges for Private and Consortium Blockchains" by Vitalik Buterin, he mentions the notion of public economic consensus. Can ...
5
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1answer
411 views

What is the fundamental value of Ethereum according to state of the art economic theory?

For example professional investor apply the Capital Asset Pricing Model (CAPM) to determine the intrinsic value of an equity. What would be the result of such a financial analysis?
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2answers
1k views

What prevents the market from assigning value to testnet ETH?

If enough people mine testnet ETH for testing purposes, difficulty will rise along with the cost of generating testnet coins. In some a circumstance why would the value of testnet coins not rise based ...
3
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1answer
69 views

Do economic bets by miners fail to ensure security if the Notional Value of a contract exceeds that of the largest such bets?

A Smart Contract could be written to track a notional value greater than that of the value of ethereum contained in the contract, or even that of the stake of the miners in Proof of Stake, or the ...
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3answers
5k views

How can DApp developers profit from their work?

Suppose that I make a new, cool DApp that gets very popular. In order to cover development costs and make some profit, I charge users of the app a small quantity which is required to use to app - all ...
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2answers
723 views

What is the way to make Ethereum available to users for free?

As the web is mostly free today (I mean the old web, the one < 3), most people won't agree in beeing asked for fuel to run sites, apps, even if the gain in terms of safety and trust are so much ...
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2answers
26k views

Ether Historical Prices

I am looking for historical datasets of the price of Ether. Similar to Bitcoin closing market price on blockchain.info or Coindesk OHLC dataset. Datasets in raw form are preferred (.json or .csv). ...
4
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1answer
263 views

Security of PoS if/when Assets (Tracked or Native) to Ethereum exceed the total Value of Ether

Given that Ethereum naturally allows for the creation of arbitrary tokens that can either have value themselves or track a real-world asset, can Ethereum be secured by PoW/PoS when the total assets on ...
18
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1answer
3k views

What were the key assumptions and analyses that went into setting Ethereum's gas price?

Frontier was launched with a default gas price of 0.05e12 wei. In Homestead, the default was reduced to 0.02e12 wei. If this gas price is too low and operations on Ethereum are too cheap, for ...
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2answers
226 views

Could parasite contracts cripple the Ethereum ecosystem?

This critique of Ethereum presents leeching Parasite Contracts as a problem. A Parasite Contract accesses data from other contracts (which may be charging fees for the data), and offers the same data ...
8
votes
2answers
402 views

How can I compare two consensus protocols?

There are a large number of competing consensus protocols in the blockchain space today. How can I compare them to each other in an objective way?
190
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7answers
122k views

What is meant by the term “gas”?

An Ethereum application that I want to use talks about needing "gas" to run. What is gas, and where do I get it?