All About Ethereum – Uncles

All About Ethereum – Uncles

Hello and welcome to AltcoinXP, my name is
anthony and today I’m talking all about ethereum
This is gonna be a complicated one, so bear
with me.
Uncles are Ethereum’s equivalent to Bitcoin’s
Orphan blocks.
In order to understand uncles, we must first
understand orphans.
Let’s draw it out.
In a blockchain based peer to peer network,
we have all of these miners connected to each
other, trying to solve a block.
When one miner solves a block, he relays that
information across the entire network.
However, as we can see.
Not all miners hear about this newly found
block at the same time
Therefore, this miner will continue mining
the previous block
This opens up the possibility of two or more
miners being able to solve a block at the
same block height.
When this happens, the bitcoin network forks,
then comes back together when the next block
is solved.
Because of Bitcoin’s 10minute block time,
a block has 10 minutes to relay across the
So these orphans only happen 4-5 times per
We wanna keep orphans from happening because
it delays confirmation time to at least 20minutes.
As a 2nd block needs to be solved before verification
of the previous blocks can happen.
But Ethereum wanted block times faster than
10 minutes.
How did they accomplish this without increasing
orphan rates?
Well, they did this by giving the orphan block
miners a rewards and renaming those blocks
to uncles.
This to increase network security.
Because miner’s wouldn’t mine Ethereum if
there was a large chance their block would
be orphaned as they wouldn’t get a reward
for their work.
The protocol behind this is called GHOST,
or �greedy heaviest observed subtree�
As far as I know, GHOST wasn’t invented by
anyone in ethereum.
It was introduced in 2013 by a couple of Bitcoin
Then the Ethereum devs modified this protocol
to fit their needs.

So, why the name change from Orphans to uncles?
Well, in bitcoin, orphaned blocks eventually
get left behind… making them orphans.
However in Etheruem, these blocks are not
left behind but instead included in the next
7 blocks.
Because they are still part of the block family
tree, they are considered uncles.
They came from the same family but aren’t
directly part of the new family.

Now, I said that these uncles are included
in the next 7 blocks and that rewards are
given to miners who find uncles
So what does the reward structure look like.
Well, here’s a little something I made to
breaking it down.
The miner who’s block is included in the main
chain gets a block reward of 5 ether.
The miner who mined the uncle gets 4.375 ether.
Each uncle the main block miner includes with
his new block gets 0.15625 Ether
So if a miner includes all 7 possible uncles,
he gets an additional 1.09375 Ether
Plus all transaction fees.
This also makes forking a bit more difficult
with Ethereum than Bitcoin.
With Bitcoin, the network chooses to follow
the longest chain of blocks.
However, Ethereum follows the chain with the
most Uncles.
Actually, I’m not sure if it follows the chain
with the most uncles or the block with the
most uncles.
That’s something to think about.
Either way, This is what’s meant as following
the heaviest chain…
The H in the GHOST Protocol.

So that’s basically it.
That’s all about Ethereum Uncles are and why
they exist.
They allow Ethereum to have block times well
under 20 seconds.
If you like this video, please like, subscribe,
and share.
If you want to support videos like these,
please donate bitcoin, ethereum, or dash,
to the addresses on screen.
You can also support me by whitelisting my
Youtube channel in your adblocking software.
Lastly, follow me on twitter and the altcoinXP
Ending Screen black screen.
As you can see in my p2p diagram
If this node solves a block at the same time
as this node, at some point both correct blocks
will reach a node and that node needs to decide
which one to keep and which to throw away.
This happens sometimes with bitcoin’s 10 minute
blocks, but it happens way more with ethereum’s
15 second block time.
When this happens, one of the block has to
get orphaned, because we can’t have two solutions
accepted for the same block.
If that happens, the network forks.
a way to reward miners who do not have low
ping connections
decrease centralization by increasing profit
chances of high ping nodes
Uncles are blocks that didn’t make it in time.
Say two people found the correct solution
to a block
The person with the lower ping would win the
block reward, because he would be know as
the first person to have found the block,
due to his lower ping
Ethereum wanted faster block times, When doing
so you increase the risk of orphaned blocks
Because the faster blocks are found, the more
chance someone else found it at the same time
as you.
This is what orphan blocks are
In ethereum these orphan blocks are a little
different, because miners are still paid for
the orphaned blocks they find
This is done to increase the security of the
Miners are more likely to stay mining if they
are paid even though they aren’t the official
block finder
With Bitcoin, the longest chain is considered
the true and safe chain, however in ethereum
the �heaviest chain� is considered the
proper chain
heaviest meaning the chain with not only the
most block, but also the most orphans
The uncle block reward is less than the main
block reward and it deminishes as more blocks
are found
until 7 blocks have passed , where the reward
resolves at 0
Miner received 1/32 of ether for each uncle
included in the block.
I don’t know why
Valid Uncle blocks are rewarded to halt network
lag (time to propagate a valid block to the
whole network).
Uncles included in a block receive 7/8 of
the static block reward � or 4.375 Ether-
with a maximum of 2 Uncles allowed per block.
See the links in the descriptioin for further

One comment

  1. No wonder eth is such a shit show, instead of solving the root cause of the issue, they insentivised Miners to mine orphaned block. Great explanation man.

Add a Comment

Your email address will not be published. Required fields are marked *