If you read articles, watch videos or follow updates about crypto and blockchain, you’ve probably come across the term ‘epoch.’ It is often used as a milestone, after which some critical event is slated to occur. But what is an epoch, and why is it important to blockchain networks? Tag along to find out.
What is an epoch?
In machine learning, an epoch is the time a neural network takes to process a training dataset. For the unacquainted, a neural network interprets human behaviour through computer programs and datasets to establish patterns, generalisations and insights. After every epoch, more data can be added to better train the neural network.
However, in blockchain networks, epoch has a much simpler explanation. It is merely a unit of time, like an hour or a day. However, every blockchain may measure epochs differently. For instance, on the Ethereum network, one epoch is the time taken to process 30,000 blocks. In contrast, an epoch on Cardano consists of 432,000 5-second slots and usually lasts for around five days.
Why are epochs important to blockchain networks?
Epochs give blockchains tangible milestones by which one can measure the progress of a network. For instance, 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 significant events based on the completion of specific epochs. For example, Ethereum’s Bellatrix upgrade commenced yesterday when Ethereum hit an epoch value of 144,896.
Similarly, epochs can also indicate when a fork in the network will be initiated. A case in point would be the Nervos Network fork in May 2022. The team announced that the network would split once it reached epoch 5,414.
Epochs are also used in staking. They help determine when the staking rewards need to be paid out to investors. On Cardano, staking rewards are given out every four epochs. Therefore, if you delegate coins to a staking pool during epoch 21, you will only receive the staking rewards by epoch 25 (basically 20 days later).
Speaking of rewards, on the Bitcoin network, one Epoch is generally four years and is used to signal the halving of the block reward. Currently, Bitcoin is in its 4th epoch, where block rewards are fixed at 6.25 BTC. At the end of this epoch, the reward will be halved, meaning miners will get only 3.125 BTC for every block they add. The process repeats itself after every epoch until the entire supply of Bitcoin has been mined.
Conclusion
Epochs are a pretty handy unit of measure for blockchain developers and users. They provide an easy way to schedule events and keep network participants on the same page. The only downside is that each network generally has a unique measure for an epoch, which can get a bit confusing.
