Ethereum Classic Vision: Proof-of-Stake consensus algorithm
In my previous article, I gave a lowdown of the upcoming airdrop for ETH hodlers. Now I will be discussing why investors and crypto lovers need to key into this airdrop. Why ETCV and not ETH or ETC.
Ethereum Classic Vision is a new blockchain that aims to bring to you the failed promises of Ethereum. The hardfork will leverage on the problems existing in the Ethereum network and offer solution in the new ETCV blockchain.
Current problems of Ethereum Network
Ethereum is the leading platform for software development and blockchain application (dApps) deployment. But currently, the network is facing a lot of crisis. The Ethereum team has proposed a lot of solution to these problems but the team has been slow in their approach and these solutions are not forthcoming.
Here are some of the problems the Ethereum network is currently faced with;
There are often backlogs of transactions in the network as the it can only process just 15 transactions per second. This means that the Ethereum network can only process one payment per time. This is so small for a network that has so much going within. Increasing the number of nodes might sound like a viable solution in the short time but this will lead to increased gas fee and processing time.
It has become increasingly difficult and less efficient to produce new blocks since the introduction of a special code into the network. If this persist, miners might be forced to abandon Ethereum and switch to other network as it becomes unprofitable and inefficient staying on the network.
This new code was introduced initially to stimulate the transition to Proof-of-Stake, but since developers cannot reach an agreement as to when thee switch will be done, this has led to a new problem.
This is not unrelated to the plunge in cryptocurrency prices and the huge control of some mining pools. The developers compounded this by reducing block rewards to 2 ETH in an attempt to make the network more efficient and buy for PoS transition. This move is obviously not working.
Ethereum is becoming more centralized as the developers has failed to reference the opinion of community as the Ethereum foundation has taken charge of what happens with the network.
Rental Storage Fees
Initially deploying on the Ethereum network is a one-time payment but recently the Ethereum lead developer stated that developers will have to pay for hosting their dApps on the network and for it to stay online.
The ETCV solution
Bitcoin and Ethereum has Proof-of-Work has its consensus protocol. Over the years, PoW has become less efficient and there is a need to switch to Proof-of-Stake. However, the switch won’t be a small undertaken as it requires a lot of work and resources.
The PoS adopted by ETCV is based on users being able to stake significant amount of their coins. This enables them to be chosen as block producers/validators and get rewarded.
Here is a lowdown of the advantage ETCV’s PoS has over ETH’s PoW
A lot of electrical energy is required to mine on PoW based blockchains. This is because miners in a PoW network work simultaneously in solving each block. This requires a lot of energy. However, PoS node is easy and it can be done on using even a mobile phone.
Fair reward distribution
Accumulation of the little transaction fees received by validators in a PoS network will result to much more profit compared to what miners receive in PoW network.
No mining farm in PoS system. This has help to keep the network decentralized as oppose to the centralized nature of PoW system.
Block validators are saddled with the responsibility of acting justly to protect the network. Failure to do so or if found to break any rule may, they lose their deposits.
The number of coins required to serve as a validator has helped to curb volatility in price as validators are not motivated to sell their coins.
Ethereum Classic Vision Roadmap
This picture depicts what ETCV team has for the future
For more info, visit any of the links below;
Hard fork Ethereum – Ethereum Classic Vision – 11.01.19
Twitter - https://twitter.com/eth_cv
Github - https://github.com/ethereumclassicvision
Telegram - https://t.me/ethereum_classic_vision
Announcement - https://bitcointalk.org/index.php?topic=5089443.0
Bounty - https://bitcointalk.org/index.php?topic=5089912.0
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