Сourt to Acquit Japanese Hidden Miner

Japanese web designed used Coinhive for hidden minning with computers of his website visitors; prosecutors offered to charge the accused a fine of $ 904k
29 March 2019   290

The Yokohama District Court acquitted the 31-year-old website designer accused of illegal mining of cryptocurrencies through the Coinhive program. This is reported by Japan Today.

Prosecutors offered to charge the accused a fine of 100 thousand yen ($ 904,000) for running the program without the consent of users, using the computing power of their computers and increasing electricity consumption.

However, the presiding judge stated that they had failed to gather enough evidence to declare the defendant’s actions “socially unacceptable”. It was also not proven that the program is a virus and was used to damage personal user data.

Thus, the web designer was fully justified.

The investigation of this case began in June 2018. In addition to the web designer, two more suspects went through the case, one of whom still had to pay a fine of 100 thousand yen "for illegal posting of the virus."

According to the University of Aachen, in 2018, mining using Coinhive brought 1271 XMR per month (about $ 250,000 at that time). Monero was the most popular currency for browser mining. At the same time, most of the funds obtained were controlled by only 10 users.

On March 8, 2019, Coinhive ceased operations due to the “economic viability of the project”.

Buterin to Propose to Increase PoS-Validators Reward

According to Vitalik proposal, if PoS-validators, for example, validate 1,000,000 ETH, then the annual yield will be 18.1%
23 April 2019   99

The creator of Ethereum, Vitalik Buterin, published on GitHub a proposal on changing the reward scheme for validators after the transition of ETH to the Proof-of-Stake consensus mechanism (PoS).

According to the formula proposed by Buterin, if PoS-validators, for example, validate 1,000,000 ETH, then the annual yield will be 18.1%.

Buterin PoS Validators Reward Proposal
Buterin PoS Validators Reward Proposal

The more assets are fixed for validation, the lower the interest rate. So, 134 217 728 ETH will bring cryptoinvestors only 1.56% per annum. At the same time, the maximum annual emission volume will be 2,097,152 ETH.

Considering that the current volume of Ethereum's market offer is 105,777,585 ETH, this offer is focused on the medium and long term. Buterin also clarified that the profitability indicators are shown without taking into account proceeds from transaction fees. Consequently, the actual income of validators can be several percent higher than the values ​​indicated in the table.

According to Justin Drake, a researcher at the Ethereum Foundation, if after implementing PoS 32 million ETH will be allocated for stacking, the income of validators will be 3.2% per annum. At the same time, the annual emission indicator will be 1% (for comparison, the current indicator of Bitcoin inflation is 3.94%).

In this case, Drake notes that after the activation of EIP 1559 of the funds collected in the form of commissions, will be destroyed. Consequently, with an average gas consumption of each shard of 1000 ETH per year, inflation will drop to 0.5%.

Users left generally positive comments on the offer. However, some of them expressed fears that in the new conditions the exchange may receive significant advantages, which will be able to do stacking at the expense of clients.