Etherzero (ETZ) - what is Ethereum's new hard fork all about?
Etherzero (ETZ), Ethereum's new hardfork has received a lot of criticism lately. Even though some are skeptical that the new coins is nothing but a scam, others truly believe that ETC is a promising new coin that can help mitigate some of Ethereum's problems.
Even though Bitcoin's blockchain was hard forked multiple times during the past year, Ethereum's blockchain witnessed only a single notable hard fork since its launch in 2015, resulting in the birth of Ethereum Classic. Nevertheless, it seems that the hard fork fever will also hit Ethereum's ecosystem during the upcoming few years, as its blockchain has just been hard forked to mark the birth of a brand new coin, called etherzero (ETZ). EtherZero (ETZ) represents an Ethereum hardfork that took place on January 20th, at approximately 10:30am GMT. The forking process was initiated at block 4936270, leading to the splitting of Ethereum's blockchain into two separate blockchains. Throughout this article, we will try to delve into EtherZero to help you better understand what it is all about.
EtherZero is bornOn December 18, 2017, the EtherZero's development team posted an announcement thread on the Bitcoin Forum that marked the first ever mention of EtherZero. The thread pointed out ETZ's key features, which included a two-layered network system, the adoption of a masternode based protocol (initially utilized by DASH's blockchain), zero transaction fees, and instant payments. Moreover, blocks are created every 15 seconds on ETZ's blockchain. The project's whitepaper wasn't published until January 15th, just a few days prior to the hardforking process. There will be a total supply of 194 million ETZ coins. Of those, 97 million coins are being distributed among ether holders, at a ratio of 1:1 ETH:ETZ. Of the remaining 97 million coins, 20 million coins were sold via a coin pre-sale, while 77 million coins are being held on reserve by Etherzero's development team.
A closer look at the technical specifications of Etherzero:
Zero-transaction fees:One of the main features of ETZ is a zero-fee transaction system, as the coin's blockchain is coded to separate the process of transaction verification from those associated with block creation, synchronization, and broadcasting. This is expected to help popularize the usage of decentralized applications (DAPPs) and smart contracts, as the current high transaction fees of both Bitcoin and Ethereum are greatly hindering the adoption of these decentralized forms of blockchain based applications. Etherzero omits the current "gas" expenditure requirements for execution of smart contracts and verification of Ethereum's transactions, yielding a zero-fee transaction network. The ether gas expenditure mechanism is necessary to shield the network against DDoS attacks. However, ETZ mitigates this challenge via adoption of a unique proof-of-stake (PoS) algorithm that guards the network against various forms of DDoS attacks.
Masternodes:Etherzero's network introduces masternodes, which were first used with DASH's network. A masternode is a special form of server that communicates with ETZ's network to promote specific levels of functionality and performance in order to to execute a specific set of tasks. In addition to hosting miners' "proof-of-work" functionalities, masternodes collectively construct the coin's two-tier network. The responsibilities of masternodes can be summarized as follows:
- Verification of transactions: This is accomplished via reaching a consensus with other masternodes chosen by the blockchain's protocol, and then broadcasting the results to provide real-time second-level payment feedback.
- Community autonomy: All proposals must be voted on by masternodes. The proposal will highlight the community's discussions and include all potential changes to Etherzero, including technological modifications, plan adjustments, changes in economic aspects of the currency, and resolution of disputes that might emerge among users.
- Dedicated services: Apart from DASH's network, which merely represents a payment network, Etherzero can be utilized in a myriad of decentralized of applications. As such, the services offered by a masternode will be categorized and specialized to reflect specific application requirements in the future.
Two-tier network:Etherzero relies on a two-tier network structure:
- An arbitration layer that is composed of the masternodes across the network.
- A proof-of-work (PoW) consensus layer.