Review Project "Ethereum Classic Vision" - Hard fork of Ethereum

Hello everyone, today I will introduce you to the extremely potential project, the "Ethereum Classic Vision" project - Hard fork of Ethereum.

Here is the detailed content:

I. Comparison of POW and POS algorithms

POW algorithm - Proof of work


POW: Abbreviated from PROOF OF WORK current work evidence with BTC, ETH and many other ALTCOINs that only support POW. You only become a confirmation of those coins if you join PROOF OF WORK which means that you have to work to get paid using computers with very terrible configuration to solve extremely complicated algorithms to confirm, record weak transaction data.

Its weakness is consuming a lot of electricity and machinery to dig very expensive. Some people think that Blockchain in general and Cryptocurrency in particular is a breakthrough in financial technology, but it consumes such a large amount of electricity worldwide so it is too expensive.

For example, Israel is a country with huge coin digging farms that separately statistics the amount of electricity they use for this excavator network, which is greater than the total electricity of Israel. Besides, there are advantages of PROOF OF WORK that miners will easily switch to other series of coins. If you feel a difference in profit, this is the downside to causing a sudden congestion, if there is a sufficient amount of miners, it will do so and negatively affect the ecosystem.

The downside is, the big miners are the most beneficial because they only need to own a huge amount of powerful machines, they will find the right and faster answer to create a monopoly. Not to mention if there is a large enough computing power they can do things that are not right for the system, contrary to the will of most coin holders.

Example: There is a certain organization or government that has enough power, able to control over 50% of the excavators in the system they can change the record, delete the data in that system is very dangerous. . We can see that this PROOF OF WORK method has become obsolete and has more advantages.

In summary, POW has the following disadvantages:

* Huge energy costs. This system is designed to ensure the complexity of the task is increasing and therefore the calculation requires more and more computing power and performance, the only transaction added to that block is from the node. First come to complete the computer.
* 51% attack vulnerability. Entities with access to more powerful computing systems can exploit more, thus potentially causing focused threats. Even now, 65% of Bitcoin hash rates are shared by five pools. This is a potentially dangerous situation: their participating forces (if any) can cause 51% of the attacks to be launched, causing the most malicious to ignore blocks from all workers. the remaining mine. Experts ensure that larger systems are protected from this kind of situation, while smaller blockchains with a much lower number of network members still face some risks.
* Ability to create discs. Updated transaction logs are defined as blocks of blocks that have the most overall complexity of proof of work. Accordingly, members search for a new block above the existing blocks. However, the ability to create disks cannot be excluded when the calculation runs in parallel, although their intended creation is not economical in the current environment.
* Computer takes a long time. This results in a significantly slower transaction process, so dumping systems with such a consensus mechanism is not suitable for fast processors or money transfers.

POS algorithm

POS stands for PROOF OF STAKE stock proof, in this POS protocol you will STAKE sign a large amount of coins to participate in this form, you have to prove that you have left 1 coin of some ABC to attend STAKE and the system will select who has the right to exploit a new block. In the form of POW, it is called "dig coin" and POS PROOF OF STAKE is called "coin casting". If you have a STAKE coin or deposit into the system, you will receive additional coins over time and the value of that coin is up or down, but the number of coins will increase. But each project will have different selection strategies based on many factors, in which the most influential factor is the number of coins they are willing to spend to STAKE and in addition to the element of time. The longer STAKE is, the more likely it is to exploit a new block. This PROOF OF STAKE form does not consume electricity like PROOF OF WORK, just a corn-powered computer can do it.

Advantage Proof-of-Stake consensus algorithm compared to Proof-of-Work

The Proof-of-Stake concept is based on users staking a significant number of coins (“freezing” them, as it were, so that they cannot be spent) in order to be chosen as block validators, for which they get a reward. This consensus algorithm has a number of important advantages over Proof-of-Work:

*  Energy efficiency. PoW-based blockchains are notoriously inefficient when it comes to electricity. Bitcoin mining alone consumes 0.33% of the global energy usage - more than the whole country of Denmark (or any of other 150 countries, including most states of Africa). Electricity spent on just one BTC transaction could power an average household for a whole month. This inefficiency is caused by the fact that all validators (miners) in a PoW network work on solving each block simultaneously, looking for a solution to a cryptographic puzzle that changes every few seconds. By contrast, running a PoS node does not require much energy: it can be done using any computeror even mobile device.

*   Fair distribution of rewards. Proof-of-Stake networks do not have block rewards – they offer only transaction fees to validators. While these are naturally lower than the standard block reward in ETH or BTC, the resulting long-term profits are comparable to those obtained with PoW, since operational costs are so low. As a result, even a user with a basic $40 Raspberry Pi computer can become a validator, as long as he or she stakes enough coins (which will come out much cheaper than buying a mining rig). All users are put in equal conditions when earning rewards with a PoS system like Ethereum Classic Vision.

*  Decentralization. Even if Bitcoin and Ethereum claim to be decentralized, they are not. The creation of new coins in itself is ever more concentrated in the hands of large mining pools (according to some data, 51% of the Bitcoinhashrate is already controlled by pools, with over 40% owned by Bitmain alone  https://www.ccn.com/bitmains-mining-pools-now-control-nearly-51-percent-of-the-bitcoi n-hashrate/) Independent miners without access to economy of scale have all but lost hope to compete with large rights. Naturally, this is very far from the ideal of decentralization and equality. PoS systems are just the opposite: there are no mining farms, no economy of scale, and even staking more coins than anyone else will never allow one validator to take over.

*  Security. It is often stated that PoS is safer than PoW, since it would require a successful attack on 51% of all nodes to hack a blockchain, which seems impossible (or at least economically unjustified). However, one needs to keep in mind that for smallprojects that have only just launched 51% of all nodes can be a small number. In fact, it can cost less than a thousand dollars to hack a smaller blockchain network (which was amply demonstrated by the 51% attack on Bitcoin Gold, when $18 million was stolen: http://fortune.com/2018/05/29/bitcoin-gold-hack/  In this context, PoS offers equal security to projects of all sizes, since block validators lose their deposits if they break the rules or act maliciously.

II. Difficulties encountered by the Ethereum platform

Ethereum – the world’s leading platform for development and deployment of blockchain applications – currently finds itself in a deep crisis. Numerous solutions are proposed, yet none of them have been implemented so far – and the present course of Ethereum leadership does not instil much optimism for the future. Fixing existing problems will take years, and the solutions themselves can lead to even bigger issues down the line. The following list describes only some of the major difficulties that have to be resolved if the Ethereum community is to move forward:

*   Scaling. Ethereum currently processes only 15 transactions per second, and long backlogs of transactions often form in the network. Since the Ethereum blockchain can only process one payment at a time, its total capacity is only as large as that of each computer in the network. Increasing the number of nodes cannot solve the issue, and as the number of transactions increases, processing times will increase and gas fees will rise. The solution is to switch from the Proof-of-Work consensus algorithm to Proof-of-Stake (see below), but the transition is constantly being delayed, and there is no indication of when it will happen.

*     Difficulty bomb. A special piece of code has been introduced into Ethereum, making it progressively more difficult and less efficient to produce new blocks. Eventually it will become so inefficient and unprofitable that miners will abandon Ethereum and switch to other cryptocurrencies. At this point all operations within the Ethereum network will cease (this is known as the Ethereum ice age). The purpose of the difficulty bomb is to stimulate the transition to PoS; however, seeing as developers cannot reach an agreement on when and how to execute the switch, the “ice age” is becoming an ever more probable scenario.

*    Declining rewards. Miners’ rewards have been in decline for the past yeardue to rising complexity, a slump in cryptocurrency prices, and excessive control acquired by large mining pools. The leadership team of Ethereum has made the situation even worse: in an attempt to make the network more efficient and win some time for the transition to PoS, they made the decision to decrease block rewards to 2 ETH, provoking the anger of most miners.

*    Centralization. It is now clear that Ethereum has failed its purpose as a truly decentralized network. The control exercised by the Ethereum Foundation and its disregard for the opinion of the community, as well as – perhaps most disturbingly – the growing concentration of mining resources in the hands of ASIC producers (up to 70% of the hashrate is controlled by just four or five pools) – testify to the fact that centralization in the Ethereum network is growing.

*      Rental storage fees. Vitalik Buterin recently stated that Ethereum will introduce fees for hosting smart contracts on Ethereum. At present, there is only a one-time deployment fee; however, in the near future developers will have to keep paying for their dApps to stay online.

III. The need to conduct Hard fork - the Ethereum Classic Vision project was launched - Project specification.

Ethereum Classic Vision is a new cryptocurrency that intends to bridge this divide of expectations and reality. A hard fork of Ethereum, it will leverage most advanced solutions proposed for the world’s second-largest digital currency, at the same time preserving the ideal of decentralization. The project will combine such technologies as sharding, P2P asset exchange, dApp development tools, and decentralized file storage using IPFS. Starting out as a PoW-based system, it will later offer stable rewards to transaction validators thanks to the implementation of Proof-of-Stake, at the same time creating an optimal environment for deploying new assets.

Ethereum Classic Vision aims to resolve the major issues facing Ethereum, including scaling, mining inefficiency, and high costs of data storage. The transition to Proof-of-Stake, described in Chapter 1, constitutes the key element of this plan, but a number of additional modules and features will also play an important role. This section introduces the solutions proposed by Ethereum Classic Vision, their advantages, and implementation plan.

1)  VisionDEX – a decentralized exchange

Ethereum Classic Vision follows the principles of true decentralization and independence promoted by Ethereum Classic and lost in Ethereum as we know it today. Therefore, one of the founding team’s priorities is to provide Ethereum Classic Vision users with a way to conduct market operations without relying on centralized exchanges. Integrating a decentralized P2P cryptocurrency exchange – named VisionDEX – will ensure that Ethereum Classic Vision holders will retain full control over their assets and will not lose them to hackers as it happened at such exchanges as Coincheck ($500 million stolen), Coinrail ($40 million) and even the supposedly decentralized (and actually hybrid) Bancor ($23 million). A P2P exchange like VisionDEX also protects its users from closure by the authorities (as happened to numerous centralized exchanges in China and Korea), bankruptcy, and malicious or incompetent actions of the organizers.

At VisonDEX, all major functions – asset exchange, order matching and handling order books – will be carried out using smart contracts. In particular, a smart contract will function as a trustless multisig escrow, holding the currency sent by the buyer until the matching amount in the other currency is received from the seller.

2)  Platform for decentralized application development
While a vast majority of new dApps are developed within the Ethereum framework, it is far from the most efficient solution due to the problems described in section 1. A constantly growing number of dApps (most of which fail to achieve adoption and remain in the system as dead weight) creates congestion, and the whole system is subject to unpredictable changes imposed by the centralized leadership of Ethereum.

To provide an alternative environment for blockchain startups, Ethereum Classic Vision will introduce its own subplatform for developing new decentralized applications, with a range of tools, including a sidechain development kit and a vast database of pre-made smart contracts, plug-and-play applications, and modules created by the Ethereum Classic Vision community and provided both for free and for a fee in ETCV. The Ethereum Classic Vision dApp platform will feature both back-end and front-end development tools, allowing users to build a complete application with an attractive UI and added native apps for Android and iOS without recurring to third-party services. There will be no smart contract storage rental fee, only a one-time deployment fee. However, the Ethereum Classic Vision community will hold regular votes to place unused smart contracts in the sleep mode to free up resources. An app can be “woken up” from such sleep by a one-time payment of an additional fee. This will address an issue plaguing Ethereum:a large number of applications are eventually abandoned due to lack ofinterest or funding but are never removed from the network.

3)  Sharding

Scaling is perhaps the most urgent challenge faced by blockchains. With all their advantages – decentralization, immutability of records, low fees, etc. - the inability of networks like Ethereum to scale threatens their entire future development. Indeed, while Visa processes 24 thousand transactions per second, Ethereum can currently process only
25. This creates a long backlog of transactions awaiting confirmation and can at times stall the whole system, as it happened in December 2017 at the height of the Cryptokitties craze. The scaling problem is not an unexpected development – it is a logical consequence of the very structure of thenetwork.

An ideal blockchain system should have three properties: security, scaling, and decentralization. In reality, networks normally have only two of these: for instance, Ethereum Classic is properly decentralized and secure, but it doesn’t scale. By contrast, Cardano is both fast (that is, it scales well) and secure, but it is centralized. As explained above, slow speeds on Ethereum are caused by the consensus algorithm, which requires the majority of nodes in the network to approve each transaction. This has to be done in sequence – one operation after another, meaning that transactions cannot be parallelized. While switching to PoS will already put Ethereum Classic Vision in a good position to solve the scaling problem, additional measures will need to be take to make the network as fast as necessary to satisfy the needs of future growth.

4)  IPFS data storage integration 

For all dApps and blockchain platforms that must store large volumes of data, the file storage challenge becomes just as important as the scaling challenge. Indeed, projects in fields as varied as medical care, insurance, design, coding, and social networking rely on heavily on files created by users – mages, code repositories, videos, technical manuals, etc. However, blockchains themselves cannot be used to store such items – they simply were not designed for the purpose. Standard blockchain transactions are cheap because the amount of data transmitted is limited to several bytes. Any attempt to store larger files on a blockchain would push transaction fees beyond a reasonable limit – for instance, it would cost thousands of dollars to cost 1 GB of data.

For this reason, any blockchain project that requires data storage presently has to use centralized servers to store files, which goes against the concept of decentralization and creates single points of failure for the whole system. Luckily, new, far more decentralized solutions already exist and will be implemented by Ethereum Classic Vision as part of its plan to become a major platform for dApp development.

IV: Project Roadmap

Q3-4 2018: ETH hard fork ideation & development; formation of the team; negotiation with and signing up first advisors
Jan 11, 2019 Snapshot of the ETH network & distribution of Ethereum Classic Vision coins
Q1/2019: Introduction of the dApps platform (initially with new dApps residing on the mainchain and support for migration from Ethereum and Ethereum Classic virtual machines); establishment of key technological partnerships; listing Ethereum Classic Vision at a number of major digital exchanges; testing the P2P exchange module VisionDEX; security audit of VisionDEX smart contracts; expanding the team and adding more developers; launch of a large-scale marketing campaign.
Q2/2019: Implementation of the P2P decentralized exchange module; onboarding of an advisory board specializing in sharding and decentralized storage technology; work on the sharding protocol; development of the decentralized storage system based on IPFS; testing the PoS consensus protocol; roadshow covering major coding events and hackathons in Europe and Asia.
Q3/2019: Switch to the PoS consensus protocol; integration of the dApp platform with VisionDEX; Sharding implementation; testing of the file storage module and the associated rewards system; attracting advisors from the field of the zero-code movement.
Q4/2019: IPFS integration with rewards for storage space providers, launch of a marketing campaign for the storage system; establishing partnerships with blockchain foundations in North America and East Asia; expanding the number of digital exchanges where Ethereum Classic Vision is listed.
Q1/2020:  Beta testing of additional features for VisionDEX (margin lending, limit orders, etc.)
Q2/2020: Integration of new exchange features: stop-loss, limit orders, margin trading; implementation of a Sidechain Development Kit for the dApp platform
Q3/2020: Implementation of cryptocurrency derivatives trading; introduction of a migration tool for dApps developed outside of EVM (NEO, EOS, Lisk, Stratis)
Q4/2020: Integration of a zero-code, drag-and-drop dApp development module

V: ETH network snapshot and distribution

The initial distribution of free Ethereum Classic Vision coins will take place after a snapshot of the ETH network, which is scheduled for January 11, 2019 (20:00 GMT). Taking a network snapshot constitutes a standard practice for cryptocurrency hard forks and produces a list of all blockchain addresses containing a certain coin or token.
Any user who is found to hold Ethereum coins in their private wallet at the moment of the snapshot will receive free Ethereum Classic Vision coins at a 3:1 ratio. For example, a user who holds 100 ETH in a private wallet (such as Coinomi, Jaxx, or Ledger Nano) will be able to claim 300 ETCV for free. It is crucial to stress that only ETH stored in personal wallets (desktop, mobile, or cold storage) are eligible for free ETCV after the hard fork. Users who hold their ETH in exchange wallets cannot claim the reward.

Once the snapshot is completed, ETH holders will be able to dispose of their coins as they wish, including transferring them to an exchange, selling them, or exchanging them. The amount of free ETCV airdropped to ETH holders depends only on how many coins they own at the moment of the snapshot – not before or after it.

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ETH: 0xD9635878b44f209d2985a6a7282942152A6375EA

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