The booming digital currency (cryptocurrency) last year made Bitcoin mining a lucrative side job.
Many of the communities that mine Bitcoin using sophisticated computers and put mining rigs in their basements or dorm rooms in exchange for digital coins will be converted into recognized currencies. In today's article I want to share the latest project 2 ether or can be called a new digital coin. Let us review the following.
2Ether is a new digital coin based on the Ethereum blockchain. Unlike the ERC20
token, this is a fully independent cryptocurrency - with its own blockchain, mining
incentives, and so on. It fully supports smart contracts written in Solidity and
Compatible with Ethereum dApps.
The 2Ether team has several main objections
What is 2Ether
2Ether is a new digital coin based on the Ethereum blockchain. Unlike ERC20 tokens, this is a fully independent cryptocurrency – with its own blockchain, mining incentives, and so on. It fully supports smart contracts written in Solidity and is compatible with Ethereum dApps.
The 2Ether team has several main objectives:
Encourage independent CPU / GPU miners and protect them from the dominance of mining farms that use ASIC hardware. This is very important now because the award block on Ethereum has been cut by one third, and market prices are still quite low.
Mining Ethereum stopped profitable, pushing small miners out of the market. We realize that inflation can be a problem for any digital currency, so prizes must be reduced over time. But it’s not true that ASIC agriculture survives in any market conditions thanks to its economies of scale, while GPU miners suffer.
2Ether solves this problem thanks to an innovative dynamic gift block system. Basic rewards gradually decrease with time. At the same time, this is dynamically adjusted for current prices. Finally, miners with low desires receive additional increases.
Give dApp developers an affordable audit tool. A smart contract audit is very important, because it helps protect investor funds. Unfortunately, blockchain security companies charge very high fees even for the simplest audits, and many of these companies do not provide quality services.
On 2Ether, projects can apply for free audit – a combination of automated testing and manual reporting, done by specially vetted members of the community. There’s also full paid audit with line-by-line code analysis and multiple reports.
Create an IEO platform integrated with a decentralized exchange and the audit system. IEOs are becoming very popular and will probably replace ICOs.
They are much more secure, because projects are vetted by an exchange first. However, exchanges often charge hundreds of thousands of dollars for an ICO, without providing any guarantee of success.
2Ether will offer a decentralized IEO platform where the community does all the evaluation of projects, and all fees are distributed among users. It will be possible to arrange and launch an IEO in just a few days. The new token will be automatically listed on the 2Ether decentralized exchange. Before the IEO, projects can order a smart contract audit on the same platform.
These innovations will take some time to implement. The 2Ether coin will be launched on December 2, 2019 and at first will use the standard PoW mining algorithm with fixed rewards. Nine months into the project, the network will switch to dynamic reward calculation. The decentralized exchange and contract audit functionality will be launched soon after,
followed by the IEO platform.
To promote the project, 2Ether will hold a large-scale airdrop among Ethereum holders. After a snapshot of the Ethereum network on December 2, 2019, everyone who has any ETH in a personal wallet will be able to get 1 ET2 for each ETH they have. Since it’s an airdrop, users won’t be asked to send or exchange any ETH. ET2 coins will be sent automatically.
Dynamic Block Rewards
In the first stage of the project, 2Ether miners will receive a fixed reward of 5 ET2 per block, with the average block time of 60 seconds (1440 blocks every 24 hours). Thus, circa 7 200 ET2 will be added to the system every 24 hours.
At the block height of 388 800 (roughly 9 months after launch), the dynamic reward system will kick in. This section first describes the overall problem of the reduction of block rewards. Next, we describe the solution offered by 2Ether, which will keep inflation low and stable and incentivize small miners and stakeholders.
The Problem Of Decreasing Block Rewards
One of the most debated issues surrounding Ethereum is the size of the block reward. For miners, block rewards are the main source of income. On the other hand, it’s also the only source of new coins on the market.
The number of ethers (Bitcoins, etc.) in circulation is constantly expanding, because miners sell the coins they receive as rewards.
This is a source of anxiety, because a currency like Ethereum is inflationary by nature. Some people feel that the normal laws of supply, demand and inflation don’t apply to cryptocurrencies, because the demand is growing very fast that it will readily consume all the available supply.
However, if the supply grows beyond a certain limit, the price of ether (or any other mineable coin) can start falling.
The most obvious solution is to reduce the number of new coins entering they system. The way to achieve this is to cut the block reward size.
However, this will also mean that miners obtain fewer new coins. If the price doesn’t rise considerably and the energy costs remain the same, the miners’ income will fall.
This is a particularly serious issue for small independent miners who use CPU and GPU devices and not ASIC chips.
A large mining farm will survive thanks to its economy of scale, even if the price of a coin falls. But a small GPU miner’s profit can fall to zero and even below zero.
So any reduction in the size of a block reward will push small miners out of the market.
In the Bitcoin network, the block reward is automatically reduced by 50% after a certain number of blocks (this is called halving).
This means that twice fewer new BTC enter circulation. In the past, each halving led to a spike in price, so that mining remained profitable for many.
In Ethereum, there is no automatic mechanism to reduce the block reward.
As Vitalik Buterin and others considered inflation to be a serious issue, the Ethereum Foundation eventually made the decision to reduce the reward from 3 ETH per block to 2 ETH.
This was known as the thirdening and was introduced by the Constantinople hard fork in
January 2019.
The Solution From 2Ether
A large part of the Ethereum community was unhappy with this decision.
Since the price of ether didn’t show such a strong growth in 2019 as the price of BTC, life became much harder for CPU and GPU miners.
This is one of the reasons behind the creation of 2Ether. Our goal is to make sure that all members of the community can profit from mining – and that those who do most for the network earn most.
The dynamic reward scheme proposed by 2Ether consists of 3 elements: base rewards as a function of the current supply, adjustment for price and increased rewards for independent miners.
2EtherEX – A Decentralized Exchange By 2Ether
Between January and September 2019, over $1 billion was stolen by hackers from centralized exchanges.
Security risks are pushing more and more investors to switch to decentralized exchanges (DEX). These platforms don’t yet allow to cross-blockchain trades, and offer limited liquidity.
But they are extremely secure and private. On a DEX, clients don’t send their funds to the exchange but place them in a smart contract.
The only person with access to the money is the owner of the secret key. The only way a hacker can steal their crypto is by getting hold of the key – for example, through phishing.
But there is no way to attack the exchange itself.
2Ether will introduce its own decentralized exchange 2EtherEX to complement the IEO platform. Any new token can be listed on 2EtherEx in just a couple of days and with a minimal fee.
Here are the steps that a project will need to follow:
Upload all the documentation – White Paper, website, social media channels, GitHub page, team profiles on Linkedin and Twitter, technical paper, smart contract audit, tokenomics, etc.
If the project previously ordered a smart contract audit on 2Ether, this step can be skipped.
If an ICO/IEO already took place on another exchange or independently, the results must be added, too.
If the project held its IEO on 2Ether, this step can be skipped.
Staking of the listing fee (equivalent of $300); it’s placed into escrow.
The community evaluates all the materials and either approves or rejects the project.
Only high-quality tokens with a good growth potential will be added. Essentially users will accept those tokens that they would trade themselves.
Not all members can evaluate tokens: it’s necessary to have a stake in ET2 tokens to become an official verifier.
If the project is approved, the listing fee is distributed among the verifiers and the project team gets access to their listing dashboard.
The founders can choose the listing date and time and the initial price. The community will be automatically notified that a new token has been added.
Trading begins.
For those teams that held their IEO on the platform, the procedure is much shorter.
The listing fee is waived completely, and the token is listed the next day after the IEO at the IEO price.
The following categories of projects will be preferred for listing: IoT, AR/VR, AI, cross-chain payments and blockchain interoperability, escrow & custody, identity verification, medical tech, information security, consensus optimization, and other projects that can benefit the industry as a whole.
Project types that will be discouraged: high-risk, gambling, betting. 2EtherEX, like any other DEX, provides a matching engine and a graphic interface to facilitate trading.
But the actual trades don’t depend on the exchange – they are completely decentralized. 2EtherEX completes the full suit of tools for project teams offered by the platform.
A blockchain project should start with a smart contract audit, proceed with an IEO, and finish with a DEX.
2Ether IEO Platform
For a couple of years in 2017-2018, it seemed like Initial Coin Offerings would be the answer to all the funding issues faced by startups. It was a fast, unregulated and cheap way of raising money – basically, a form of crowdfunding.
From ICO projects in 2017, the number rose to 2018. The total amount of funds collected by ICOs in 2018 was enormous – over $. (It should be noted that $1.7 billion out of these were raised by Telegram’s blockchain project, TON). On average, an investor of a successful ICO earned 100-200% in profits.
People who used to invest in the Forex markets or on crowdfunding platforms rapidly switched to blockchain projects.
These investments were particularly attractive because any profit could be converted into Bitcoin or Ethereum and then stored or exchanged into fiat.
This income was very easy to hide from the authorities, so investors didn’t have to worry about paying the capital gains tax.
But as the popularity of ICOs increased, it became clear that it’s far from a perfect investment tool. Many serious issues emerged, destroying investors’ trust in Initial Coin Offerings:
A very high percentage of fraudulent projects (more than 50%) – token holders had no legal recourse and no way of finding the conmen who disappeared with their money;
High costs – an ICO had to have a high budget (over $1 000 000) to attract investors’ attention in such a competitive market.
As a result, many talented teams couldn’t afford an ICO;
Listing a token on a crypto exchange could be even more expensive than the ICO itself (over $1 mln on some exchanges);
Token dumps: a token’s price would rise sharply as soon as it was listed on an exchange, then fall even faster – usually below the ICO price.
Those token holders who didn’t manage to dump their tokens at once suffered losses;
Project teams spent all their money and effort on marketing their ICO, ignoring product development.
As a result, even successful ICOs usually didn’t release any product.
Advantages Of IEOs
An IEO is a new format of raising investments for blockchain projects – much more secure and structured.
In this model, it’s not a project itself that organizes a token sale, but a crypto exchange. The project prepares a complete set of documentation and sometimes provides a prototype.
The exchange verifies all the documents and the identities of the founders, analyzes the idea’s value, checks the project for legal compliance, etc.
If everything is in order, the exchange will agree to hold an IEO for an established fee. It will then notify its customers about the upcoming tokensale.
Usually several rounds of an IEO are organized, and in many cases tokens sell out in minutes and even seconds.
The exchange acts as a guarantor that the project is legitimate and all purchased tokens will be delivered.
On the other hand, all token buyers are already registered on the exchange and have passed the KYC. So the project team doesn’t have to worry about verifying each buyer.
Marketing expenses are much lower, too, because the exchange does some promotion among its audience.Unfortunately, IEOs have their flaws, too:
Exchanges charge too much for an IEO – often more than $100 000;
An exchange can cancel an IEO but keep the fee, claiming that the project has violated some rules;
Success is not guaranteed: the exchange doesn’t have too much financial interest in promoting an IEO, because it will get its fee anyway.
The verification process (due diligence) is nowhere near as rigorous as it should be: smaller exchanges are happy to accept low-quality projects, because it’s a great source of revenue for them.
Details About The ET2 Token
Symbol: ET2
Blockchain: 2Ether (derived from Ethereum)
Decimals: 18
Mining algorithm: Proof-of-work with incentives for CPU/GPU miners
Average block time: 60 seconds
Block reward: first fixed at 5 ET2 per block, then dynamic starting from block 388 800 (around 9 months after launch)
Platform governance: decentralized
Maximum total supply: 18e14 ET2
Pre-mine: will correspond to the number of ETH owned by personal blockchain addresses, as revealed by the network snapshot on December 2, 2019, at 20:00 GMT.
The amount will equal the total number of ether in circulation (up to 120 million ETH) – or roughly 0.0016% of the maximum total supply.
An additional small number of coins will be pre-mined to reward bounty campaign members and to create a development fund for the project.
Distribution of pre-mined ET2: airdrop for Ethereum holders (95%), bounty (1%), reserve fund (4%).
Ethereum network snapshot date: December 2, 2019, at 20:00 GMT
Airdrop starting date: Airdrop terms and conditions: to receive free ET2 coins, it’s enough to hold ETH in any personal wallet, such as MEW, MetaMask, etc. On December 2, 2019, at 20:00 GMT, a snapshot of the whole Ethereum network will be taken to form a list of all private blockchain addresses holding any ether.
These addresses will be eligible for the airdrop. Users who store ETH in exchange wallets will not receive ET2 unless they transfer their ether into a personal wallet shortly before the snapshot.
For each ETH a user holds, 1 ET2 will be airdropped. It doesn’t mean any exchange or conversion, of course: the airdrop is completely free. By saying that one receives 1 ET2 for each ETH, it’s meant that the amount of ether in a wallet is used for calculation purposes only.
Roadmap
May-October 2019 – The project team was formed; development of the blockchain; working out the dynamic reward formula; analysis of the IEO and DEX market.
October 2019 – Work on the white paper and on the website; launching social media channels.
November 2019 – Start of the bounty campaign; completing work on the blockchain and coin; smart contract audit.
December 2019 – Snapshot of the Ethereum network and launch of 2Ether (December 2); large-scale airdrop of pre-mined ET2 tokens to Ethereum holders; bounty campaign continues.
January-March 2020 – Work on the decentralized exchange; attracting and verifying users who could evaluate projects and audit smart contracts.
April 2020 – Release of the decentralized exchange; testing the system for evaluating IEO projects; work on the dynamic block rewards mechanism.
May 2020 – Launch of free smart contract audit (target – at least 10 auditors on the platform); testnet for dynamic block rewards launched.
June 2020 – Final tests of dynamic block rewards; at least 20 auditors on the platform; 5+ smart contracts evaluated.
July 2020 – Block height of 388 800 reached and dynamic block rewards adjusted by block height are launched on the mainnet; at least 5 smart contracts are audited; testing the IEO platform.
August 2020 – the IEO platform is launched in the test mode for outside testers.
September 2020 – First IEO on the platform; adding the adjustment of block rewards by price.
October – December 2020 – A total of 20+ IEOs on the platform; introduction of reward incentives of CPU/GPU miners.
INFORMATION :
