Electroneum has undertaken a successful fork. With this development they have engineered two new blockchain processes;
Proof of Responsibility
Both these processes promise to bring substantial improvements in performance, scalability, and security. The move also allows Electroneum to focus on its vision of adoption in developing countries through partnerships with NGOs.
We have undergone significant changes that will benefit users, exchanges and many alike. The game-changing software update generated much excitement and many questions. Check out our #FAQ: https://t.co/3fesKE7qVd #ETN #electroneum pic.twitter.com/TyK5yrXF9X
— electroneum (@electroneum) July 8, 2019
Benefits of the new blockchain
- Become one of the few cryptocurrencies that are insusceptible to 51% attack
- Reduce block reward (new coin emission) by 75%, due to the low requirement of energy
- Increase scalability, confidence and commercial viability
- Speed up on-chain transactions
- Involve relevant and influential Non-Governmental Organisations (NGOs) in the Electroneum project.
Proof of Responsibility
Proof of Responsibility is a new way of Electroneum mining where the decentralized network layer is run by responsible global organizations (mainly NGOs that have been qualified to participate) operating in the developing world.
Electroneum’s head blockchain developer, Chris Harrison, explains:
“It is a new mining paradigm which obligates the miners to two primary responsibilities which are: 1) Maintain the integrity of the payment network, and 2) Spend the block rewards they receive responsibly to help poor people in line with Electroneum’s humanitarian agenda.”
Notable points include:
- The NGOs get the block reward and they will use it to help the same target people in the countries which Electroneum is targeting this year.
- A huge increase in the security of the Electroneum network via highly trusted nodes makes it insusceptible to a 51% attack.
- The new blockchain runs on ONE-MILLIONTH of the electricity that it took before!
Electroneum had a very large block reward during launch to encourage hashing power, but due to Proof of Responsibility, the same power is not required. This means hash rates are reduced by as many times from Giga hashes to less than half a kilo hash. This has resulted in a 75% Block Reward Reduction.
Electroneum’s new blockchain model is called Moderated Blockchain. The moderated blockchain operates two layers:
Layer One: A decentralized layer where the trusted miners operate their mining servers and handle the ETN transactions.
Layer Two: The second layer of highly trusted nodes is operated by Electroneum as a company.
The highly trusted nodes passively monitor the blockchain for unusual or damaging activity and have the power to shut down that activity in seconds.
The Moderated Blockchain is a very unique open ledger network that enables the highly skilled staff to permanently monitor the system to ensure it is 100% free of any anomaly and when one does occur, crush it immediately and thus prevent a 51% percent attack from every happening.
Who are Electroneum’s new trusted miners?
- Electroneum has chosen vocational NGOs as trusted mining partners who are also trustworthy organizations. Due diligence has been done to ensure they are transparent, honest, and aligned with Electroneum’s vision to work within the developing world.
- The NGOs have decided to remain anonymous over concerns of how cryptocurrency could reflect on their organizations. For now, locations of the NGOs are being kept undisclosed for security reasons until they themselves decide they if they want to make public that information.
- Electroneum has suggested that the mining rigs can be run in the cloud to ensure uptime; however, it is up to the NGOs themselves decide where their equipment is hosted.
- At this stage, all mining rigs have been set up by the Electroneum team as this is the first foray for NGOs into the cryptocurrency mining space.
- The mining rigs are self-sufficient and need very little technical support, however, a moderator layer monitors the new Moderated Blockchain to ensure the mining rigs are online and benefit the network.
- The NGOs, initially, almost certainly convert the ETN to USD or other currencies because they have always used fiat to deliver their donations.
- Electroneum has deliberately targeted NGOs that are in regions that were we are imminent to enable airtime top-ups directly with ETN from within the Electroneum mobile app.
Founder and CEO Richard Ells said
“Many crypto projects will catch on to this concept we have created as soon as they see the benefits that it not only provides Electroneum with but also, indirectly, the rest of the cryptocurrency industry. In fact, Facebook talks about a very similar concept in the White Paper describing their Libra cryptocurrency project. But while they were writing about it, we developed it, launched it and made it a reality.”
Electroneum aims to unlock the global economy for more than 1.7 billion unbanked people worldwide. Their digital payments ecosystem allows anyone to store, send and receive digital funds via their smartphone -- no bank account required. Their mobile-based payments solution is powered by ETN -- the world’s fastest and first KYC/AML compliant cryptocurrency. ETN is a store of value that can be used to purchase everyday items, from bread and milk to mobile phone top-ups.