Try Quests to earn cryptoFlash Bounty: Miners Moving?
Introduction
WHAT IS ETHEREUM MINING?
Mining is the process of creating a block of transactions to be added to the Ethereum blockchain.
The word mining originates in the context of the gold analogy for crypto currencies. Gold or precious metals are scarce, so are digital tokens, and the only way to increase the total volume is through mining. This is appropriate to the extent that in Ethereum too, the only mode of issuance post launch is via mining. Unlike these examples however, mining is also the way to secure the network by creating, verifying, publishing and propagating blocks in the blockchain.
Mining ether = Securing the Network
Ethereum, like Bitcoin, currently uses a proof-of-work (PoW) consensus mechanism. Mining is the lifeblood of proof-of-work. Ethereum miners - computers running software - using their time and computation power to process transactions and produce blocks.
WHY DO MINERS EXIST?
In decentralized systems like Ethereum, we need to ensure that everyone agrees on the order of transactions. Miners help this happen by solving computationally difficult puzzles to produce blocks, securing the network from attacks.
💡 Methodology
The tables (ethereum.core.fact_blocks), (ethereum.core.fact_hourly_token_prices) and (ethereum.core.fact_transactions) were used to make the charts of this dashboard.
Most of the charts are in the time period of the past 60 days to today, and the rest of the charts are from the past one year to today.
To get the difficulty and hash rate of the network, I have used the following two formulas:
avg(difficulty /pow(10,12))/"average block time" as "Average hashrate network TH/s"
avg(difficulty /pow(10,15)) as "Average Network difficulty Ph"
This query is used in this dashboard:
Thanks to the owner of this query
Overview
This dashboard will give you :
- Average hash rate vs. Average network difficulty
- Total Number Of Mined Blocks And ETH Price (Per Day)
- Number Of Unique Miners (Per Day)
- Income Of Miners (Per Day)
- Number Of Miners Who No Longer Mine (Per Day)
- Total number of mined blocks volatility (Per Day)
- Total number of mined blocks (Per Day)
Description 1
As you can see in the chart , on May 13, 2022, the average hash rate of the network reached its highest level. It can be said that many miners were active on that day, and after this date until September 14, the trend of these two parameters was downward, and after September 14, they almost reached zero.
In the graph of the overall difficulty of the network and the hash rate, because the hash rate is obtained by dividing the time of each block and the difficulty of the network, the graphs have moved very close to each other.
Description 2
In this chart, you can see the comparison of the daily price of ETH with the number of daily mined blocks from the past 60 days until today. As we have shown, the number of daily blocks has been almost constant in these two months, except for the last week, which saw a decrease in blocks. and on September 15 and 16, we see a large increase in mined blocks.
As you can see, the price of ETH has also decreased in the last week
Description 4
In the chart on the left, we have shown the income of ETH miners in the past one year, as you can see, the trend of miners' income has been very decreasing in this one year, and this is the reason for reducing the hash rate and the difficulty of the network.
As you can see, miners had a lot of income on May 1, 2022.
Description 6
In this charts, we can see Total number of mined blocks volatility In Last 60 Days (Per Day).
As you can see, in the past weeks, we have seen negative volatility and it shows that miners have reduced their activity.
but, on the two days of September 15 and 16, the activity of miners was very high.
Conclusion
According to the charts above, we understand that ETH miners reduced their activity in the weeks before the Merge, and some of them stopped their activity, and the closer we got to the Merge, their activities decreased more. And after Merge, the difficulty and hash rate of the network reached zero, and practically the activity of the miners has ended.
About me:
- Author: Hojjat
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- Twitter: @hojjat8d
- Email: hojjat78delshad@gmail.com
Thanks For your time
Description 7
In the left chart, we have a chart showing the number of mined blocks per day in recent weeks and it is clear that the number of mined blocks per day is declining.
On July 20 July we have about 6476 mined blocks per day but in the Sep 15 we have only 5900 mined blocks. and there is an obvious down trend in the mined blocks per day in recent weeks.