What is Ether-1? | ETHO 101
Name: Ether-1 (ETHO)
Mining Algorithm: Ethash/Dagger-Hashimoto
Block time: 13 seconds
First Announced: March 11th, 2018
Explorer: https://explorer.ether1.org/home
Website: https://ether1.org/
Ether-1 launched on March 11th, 2018. Ether-1 is a fork of the popular cryptocurrency Ethereum, hence the name “Ether-1”. In short, forking from existing cryptocurrencies allows developers to use another coin’s code as a baseline and developing on top of it. Using Ethereum’s code as a base, Ether-1 has created a unique decentralized platform, with its main focus on decentralized storage services.
Ether-1 has several unique features, distinguishing it from most copy-paste Ethereum forks.
What makes Ether-1 so special? Outlined it its whitepaper, Ether-1 aims to decentralize everything. This vision is evident in their first blockchain venture, EthoFS. The development team has outlined a basic plan post-ethoFS development, letting the community decide future ventures.
Mining
Ether-1, being an Ethereum fork, uses Ethash, a proof-of-work algorithm. We covered how POW algorithms work and their benefits here. To summarize, POW algorithms are the most decentralized consensus methods.
On launch day Ether-1 experienced several chain forks as miners piled onto the network. As a result, the ETHO team postponed launch and ironed out issues, making for a successful second launch. During the chaos that ensued, the development team made sure to communicate effectively and resolve the issue(s) fair quickly.
Since the re-launch mining has been progressing flawlessly. Block rewards initially started at 13 ETHO (10 ETHO for miners, 2 ETHO node rewards, and 1 ETHO for the treasury). Ether-1’s use of a treasury fund, guarantees that there will always be funds for development, making Ether-1 sustainable. The current block reward is 5.6 ETHO per block.
Kronos Fork
In short, a fork allows network upgrades to take place given consensus of the miners. This fork brings about several major network upgrades. Recently unanimously voted by the community, Kronos will take place on December 24th, 2019.
The Kronos fork implements 4 major upgrades/changes:
First, node revenue sharing will be activated. Through this, node participators in EthoFS testing, will receive rewards.
Secondly, although Ether-1 is an Ethereum fork, Ethereum network upgrades are not automatically implemented as Ether-1 is its own chain now. Kronos will implement recent Ethereum chain upgrades. This in turn, will decrease sync times across the network as well as implement stronger security.
Third, Kronos will take care of some administrative business. The ETHO team runs their own network of nodes for testing and development purposes. With Kronos, these nodes will be consolidated into a single main cluster, saving costs.
Monetary Policy
Fourth and the most notable, Kronos will update the Ether-1 Monetary policy. The Monetary policy determines the block reward in respect to the block height (how many blocks are on the blockchain). The Kronos fork will drastically reduce block rewards to combat the current high inflation. The fork will target a 3-4% inflation rate, similar to the US dollar. Ether-1’s current inflation rate of ~60% (not unusual for cryptocurrencies), results in huge sell offs due to the influx of mined coins.
Kronos will accelerate the reduction of block rewards. By 2027, ETHO’s supply will be 65 million with a low 3.67% inflation rate. Furthermore, each year after this the inflation will decrease by a further 0.07% as supply increases.
ETHO’s block reward will never dip below 1 ETHO. Therefore, ETHO will have an indefinite supply, contrary to the current 85 million cap. That being said, the inflation rate by an infinite supply is negligible as ETHO’s supply will be established by that point.
Read more about the Kronos fork here. (Hosted on EthoFS)
EthoFS
Ether-1’s primary offering is called EthoFS. One of the first decentralized hosting platforms of its kind, EthoFS offers much more than traditional centralized hosting platforms. Combining a network of nodes and IPFS (InterPlanetary File System) EthoFS has the potential to disrupt the cloud storage industry. In development since launch, EthoFS is ready to be deployed as final quirks are being worked out.
Platform and Usability
The ETHO team’s dedication to adoption and usability is evident in the development of EthoFS. Featuring a clean, self-intuitive dashboard, anyone can use and navigate EthoFS. Furthermore, the ETHO team published detailed documentation on how to navigate, if clients are lost.
Fees are arguably one of they key decision making factors when choosing a hosting provider. The current EthoFS fee is 1 ETHO/MB/Week. This price is affordable and cheaper than many centralized providers. Furthermore, the fee is expected to decrease as EthoFS scales.
Decentralization
Decentralized content delivery significantly increases the complexity and resources required to attack a decentralized website. Attackers can not attack a centralized location as content is distributed over the network. For this security benefit alone, decentralized hosting makes lots of sense.
Censorship
Decentralized content delivery means censorship-free content. Content being delivered through decentralized methods, can not be regulated by and government or entity, and thus can not be censored. This allows clients to publish controversial articles in regions where they may be censored.
Decentralized Nodes
EthoFS is maintained by a global node network. Moreover, these nodes are run by individual members across the globe, allowing for a truly decentralized platform.
Node installation is largely automated, thanks to the focus on ease of use. Installation is quick, usually under an hour and beginners can easily set up their own node(s).
Installation guides are available here.
Unlike many masternode coins, Ether-1 nodes have function beyond decentralizing the network.
Service Node
- Collateral: 5,000 ETHO
- Storage: 20 GB
- Memory: 1GB
Service nodes’ primary goal is to act as a relay for Ether-1’s decentralized platform. Service nodes also provide basic bandwidth for EthoFS. Not requiring a large collateral or resources, service nodes receive 1/4 of the reward of a masternode.
Masternode
- Collateral: 15,000 ETHO
- Storage: 40GB
- Memory: 2GB
Masternodes require larger collateral and resources. Consequently, they play a larger role in the network. Masternodes provide the majority of storage and computing resources for EthoFS. As a result, they receive 4 times the reward of a service node.
Gateway Node
- Collateral: 30,000 ETHO
- Storage: 80GB
- Memory: 4GB
Gateway nodes require the largest collateral and resources. These resources provide storage as well as a gateway to all decentralized hosted content. Gateway nodes receive 8 times the reward of a service node or twice the reward of a masternode.
Roadmap/Future
The past year has been productive for the ETHO team. They developed EthoFS from the ground up, and as EthoFS is getting ready for public release the question remains: what next? Ether-1’s roadmap is available here. In short, Ether-1 aims to “decentralize everything”. The ETHO team is already working on several projects.
Decentralized Node Protocol
Xerom is Ether-1’s sister chain. In short, the Xerom blockchain operates in sync with the Ether-1 blockchain. Xerom is used for testing and development. Learn more about Xerom.
DNP has been in testing on Xerom for the past year. Results have been promising, and the next phase of testing will take an additional 60-150 days after which, DNS will be added to the Ether-1 blockchain.
Decentralized Governance
Community development and involvement is essential to Ether-1’s principles. Recently published ECP-1 (Ether-1 Community Proposal) allows community members to run for ETHO council positions. The decentralized council will consist of 7 people. This council will codify, develop, and improve upon the white paper. Moreover, the council is elected by community members, staying true to decentralization. Applications to run for the decentralized council are due by January 15th, 2020. Learn more
Disclaimer: Content displayed on thecryptoassociate.com is not investment advice. Investors should do their own research before investing in digital assets or anything displayed on this site. The Crypto Associate does not recommend trading any sort of investment in cryptocurrencies and digital assets. The Crypto Associate is not responsible for any losses incurred due to the buying or selling of cryptocurrencies displayed on this site. All content is for informational purposes only. The Crypto Associate does not endorse, affiliate or represent any third-party links including advertisements. The Crypto Associate participates in affiliate marketing. Read the full disclaimer
