Eras in blockchain and why we need them
Of CNBCTV18.com IST (published)
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In machine learning, an epoch is the time a neural network spends processing a training data set. For the unfamiliar, a neural network interprets human behavior through computer programs and datasets to establish patterns, generalizations and insights. After each epoch, more data can be added to better train the neural network.
If you read articles, watch videos, or follow crypto and blockchain updates, you’ve probably come across the term “epoch.” It is often used as a milestone, after which a critical event is scheduled to occur. But what is an era and why is it important to blockchain networks? Join us to find out.
What is an era?
In machine learning, an epoch is the time a neural network spends processing a training data set. For the unfamiliar, a neural network interprets human behavior through computer programs and datasets to establish patterns, generalizations and insights. After each epoch, more data can be added to better train the neural network.
But in blockchain networks, the epoch has a much simpler explanation. It’s just a unit of time, like an hour or a day. However, each blockchain may measure epochs differently. For example, on the Ethereum network, an epoch is the time it takes to process 30,000 blocks. In contrast, an epoch on Cardano consists of 432,000 5-second traces and typically lasts around five days.
Why are epochs important for blockchain networks?
Epochs give blockchains concrete milestones against which the progress of a network can be measured. For example, Bitcoin and Ethereum began at epoch 0 when the Genesis Block was mined, and Homestead was released, respectively.
They also provide networks with a calendar, allowing developers to schedule important events based on the completion of specific epochs. For example, Ethereum’s Bellatrix upgrade started yesterday when Ethereum reached an epoch value of 144,896.
Similarly, epochs can also indicate when a fork in the network will be initiated. An example would be the Nervos Network fork in May 2022. The team announced that the network would split when it reached epoch 5,414.
Epochs are also used in staking. They help determine when the stake rewards must be paid out to investors. On Cardano, stake rewards are distributed every four epochs. Therefore, if you delegate coins to a staking pool during epoch 21, you will only receive the staking reward by epoch 25 (essentially 20 days later).
Speaking of rewards, on the Bitcoin network an epoch is usually four years and is used to signal the halving of the block reward. Currently, Bitcoin is in its fourth epoch, where block rewards are set at 6.25 BTC. At the end of this epoch, the reward will be halved, meaning miners will receive only 3,125 BTC for each block they add. The process repeats after each epoch until the entire supply of Bitcoin is mined.
Conclusion
Epochs are quite a handy measurement unit for blockchain developers and users. They provide an easy way to plan events and keep network participants on the same page. The only downside is that each network generally has a unique goal for an epoch, which can get a bit confusing.
