A recently publication in etherplan states that Ethereum Classic (ETC) has suffered immense instability over the past 18 months, as it has been very easy to persistently reorganize the chain, which significantly disrupting it. Though it worked as designed it did not work well for the network.
Ethereum Classic tweeted: “It’s an unavoidable reality that @eth_classic has lost momentum in market share and hash-rate. If not addressed, continued reorganizations could permanently hinder network’s future development.”
Due to this vulnerability several improvement proposals have been proposed, but not all of the proposals provide for the guarantee of continuity of ETC’s principles and core values.
Despite, none of them from the ecosystem were able to come up with an alternative set of internal changes which will be able to solve the problems which the network is going through during the short term.
The current vulnerability is external in nature; however, if not addressed it might lead the Ethereum Classic blockchain to permanently lose liquidity and market share either in the medium or long term.
The 3 important improvement proposals are: ECIP-1049 (Keccak256), ECIP-1098 (Treasury), and ECIP-1100 (MESS).
The current protocol compact 2020, if the ETC ecosystem should agree is meant to arrive at some kind of consensus in the short-term to help solve the urgent problems faced by the network now.
Trend is to consider approving all three ECIPs with time limits for the Treasury and MESS, to ensure that the system eventually falls back automatically to its original design. Eventually, making Keccak256 permanent.
Sydney Ifergan, the crypto expert tweeted: “Sometimes it becomes important to give up in a bit of long held values to contribute to security. Ethereum Classic (ETC) with the current ECIPs is facing just that.”
If the reorganizations are not addressed, the network will eventually lose on its liquidity. This will obviously interfere with the future development.
Though the ECIP-1098 and ECIP-1100 are not in alignment with the Nakamoto consensus blockchain principles, there seems to be no other way than to arrive at some kind of consensus doing something as soon as possible to sustain the ecosystem. However, ECIP-1049 agrees with POW based Nakamoto consensus, so it is set to be permanent.
The risk foreseen is that the treasury in ECIP-1098 provides for the risks that the developer teams will count with revenues to fund their projects. This might lead to them being biased to renew the treasury indefinitely.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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