Ethereum Classic Vision (ETCV) - Fork 3:1 of Ethereum | Airdrop | Bounty
Ethereum Classic Vision is a hard fork of Ethereum that leverages the best of both worlds – true decentralization of Ethereum Classic and cutting-edge protocols developed for ETH, such as PoS mining and sharding. With its immense scaling potential, high speed, and great rewards for miners, Ethereum Classic Vision is the ultimate answer to the current challenges of the market. During the upcoming hard fork on January 11, 2019, all Ethereum holders will receive 3 ETCV for each ETH in their personal wallets.
Why Ethereum Classic Vision
Ethereum Classic Vision combines all three features that a truly successful blockchain must have: decentralization, scalability, and security. It offers a number of significant advantages over ETH, ETC, and BTC:
A more efficient, secure, and profitable mining protocol that will keep the network fully decentralized.
No rental storage fee
Launching a smart contract will incur a minimal one-time fee;
unused contract can be placed in temporary sleep state as a result of a
ETCV network will be able to process 25000+ transactions per second as compared to just 25 in ETH.
Cheap decentralized file storage for your dApp.
ETCV miners do not need to worry that their reward will be
arbitrarily lowered – in our system, miner and trader interests are
Ethereum Classic Vision hard fork - January 11, 2019
A snapshot of the ETH network will be taken on January 11, 2019. ALL users who hold ETH in their personal wallets at the moment of the snapshot will receive 3 ETCV per each ETH after the fork. Note: you must hold ETH in your personal wallet (Jaxx, Coinomi, MyEtherWallet, Ledger Nano, etc.) to get your free ETCV after the fork. Exchange wallets are not accepted!
Ethereum: current challenges and potential solutions
1.1. Ongoing crisis of the Ethereum network
Ethereum Classic Vision is an upcoming hard fork of Ethereum – a new cryptocurrency
that proposes bold and efficient answers to the crisis in the blockchain industry. Ethereum
– the world’s leading platform for development and deployment of blockchain
applications – currently finds itself in a deep crisis. Numerous solutions are proposed, yet
none of them have been implemented so far – and the present course of Ethereum
leadership does not instil much optimism for the future. Fixing existing problems will
take years, and the solutions themselves can lead to even bigger issues down the line. The
following list describes only some of the major difficulties that have to be resolved if the
Ethereum community is to move forward:
1) Scaling. Ethereum currently processes only 15 transactions per second, and long
backlogs of transactions often form in the network. Since the Ethereum blockchain can
only process one payment at a time, its total capacity is only as large as that of each
computer in the network. Increasing the number of nodes cannot solve the issue, and as
the number of transactions increases, processing times will increase and gas fees will rise.
The solution is to switch from the Proof-of-Work consensus algorithm to Proof-of-Stake
(see below), but the transition is constantly being delayed, and there is no indication of
when it will happen.
2) Difficulty bomb. A special piece of code has been introduced into Ethereum, making it
progressively more difficult and less efficient to produce new blocks. Eventually it will
become so inefficient and unprofitable that miners will abandon Ethereum and switch to
other cryptocurrencies. At this point all operations within the Ethereum network will
cease (this is known as the Ethereum ice age). The purpose of the difficulty bomb is to
stimulate the transition to PoS; however, seeing as developers cannot reach an agreement
on when and how to execute the switch, the “ice age” is becoming an ever more probable
3) Declining rewards. Miners’ rewards have been in decline for the past year due to rising
complexity, a slump in cryptocurrency prices, and excessive control acquired by large
mining pools. The leadership team of Ethereum has made the situation even worse: in an
attempt to make the network more efficient and win some time for the transition to PoS,
they made the decision to decrease block rewards to 2 ETH, provoking the anger of most
4) Centralization. It is now clear that Ethereum has failed its purpose as a truly
decentralized network. The control exercised by the Ethereum Foundation and its
disregard for the opinion of the community, as well as – perhaps most disturbingly – the
growing concentration of mining resources in the hands of ASIC producers (up to 70% of
the hashrate is controlled by just four or five pools) – testify to the fact that centralization
in the Ethereum network is growing.
5) Rental storage fees. Vitalik Buterin recently stated that Ethereum will introduce fees
for hosting smart contracts on Ethereum. At present, there is only a one-time deployment
fee; however, in the near future developers will have to keep paying for their dApps to
1.2. Proof-of-Stake consensus algorithm: advantages
Proof-of-Work remains the main consensus protocol utilized in the cryptocurrency space,
mainly due to the fact that it is used by the two largest blockchains – Bitcoin and
Ethereum. Yet, PoW is highly inefficient and lies at the root of many problems faced by
these distributed networks. At the same time, switching from PoW to Proof-of-Stake is a
complex undertaking that requires significant resources and careful balancing.
Ethereum Classic Vision is built as an advanced, fast, easy-to-scale, and highly
decentralized system, and Proof-of-Stake clearly does not correspond to these objectives.
Thus, after an initial period when the platform will use PoW, a switch to PoS will be
carried out. Unlike Ethereum, which will most probably go through a lengthy partial
testing stage (with one block out of 100 validated using PoS), Ethereum Classic Vision
will execute a more decisive and confident transition. We firmly believe that introducing
a revolutionary upgrade in a highly limited form can only destabilize the network,
prolong discussions, create discord and ultimately make a full switch impossible.
The Proof-of-Stake concept is based on users staking a significant number of coins
(“freezing” them, as it were, so that they cannot be spent) in order to be chosen as block
validators, for which they get a reward. This consensus algorithm has a number of
important advantages over Proof-of-Work:
1. Energy efficiency. PoW-based blockchains are notoriously inefficient when it comes to
electricity. Bitcoin mining alone consumes 0.33% of the global energy usage - more than
the whole country of Denmark (or any of other 150 countries, including most states of
Africa). Electricity spent on just one BTC transaction could power an average household
for a whole month. This inefficiency is caused by the fact that all validators (miners) in a
PoW network work on solving each block simultaneously, looking for a solution to a
cryptographic puzzle that changes every few seconds. By contrast, running a PoS node
does not require much energy: it can be done using any computer or even mobile device.
2. Fair distribution of rewards. Proof-of-Stake networks do not have block rewards – they
offer only transaction fees to validators. While these are naturally lower than the standard
block reward in ETH or BTC, the resulting long-term profits are comparable to those
obtained with PoW, since operational costs are so low. As a result, even a user with a
basic $40 Raspberry Pi computer can become a validator, as long as he or she stakes
enough coins (which will come out much cheaper than buying a mining rig). All users are
put in equal conditions when earning rewards with a PoS system like Ethereum Classic
3. Decentralization. Even if Bitcoin and Ethereum claim to be decentralized, they are not.
The creation of new coins in itself is ever more concentrated in the hands of large mining
pools (according to some data, 51% of the Bitcoin hashrate is already controlled by pools,
with over 40% owned by Bitmain alone)1. Independent miners without access to
economy of scale have all but lost hope to compete with large rights. Naturally, this is
very far from the ideal of decentralization and equality. PoS systems are just the opposite:
there are no mining farms, no economy of scale, and even staking more coins than
anyone else will never allow one validator to take over.
4. Security. It is often stated that PoW is safer than PoW, since it would require a
successful attack on 51% of all nodes to hack a blockchain, which seems impossible (or
at least economically unjustified). However, one needs to keep in mind that for small
projects that have only just launched 51% of all nodes can be a small number. In fact, it
can cost less than a thousand dollars to hack a smaller blockchain network (which was
amply demonstrated by the 51% attack on Bitcoin Gold, when $18 million was stolen)2.
In this context, PoS offers equal security to projects of all sizes, since block validators
lose their deposits if they break the rules or act maliciously.
The price of PoS-based cryptocurrencies, including Ethereum Classic Vision, will remain
more stable in the long run and exhibit a steady growth rather than uncontrolled volatility
that can be seen with Bitcoin. Indeed, validators have no motivation to sell their ETCV
coins, since they would lose their stake and the right to validate transactions. By holding
coins one earns more than by speculating with them on an exchange.
PoS does have its challenges - for example, staked coins have to be stored in a secure
offline location, which can lead to the emergence of powerful centralized cold storage
“vaults” that can become points of failure. Moreover, miner rewards with PoS may not be
as high as they were in the best periods of PoW mining. However, the benefits of PoS for
the crypto community and for the environment easily outweigh these issues.
Cardano is both fast (that is, it scales well) and secure, but it is centralized. As explainedincludes the receipt, is sent to Shard 2, where the receipt is checked; finally, the balance
above, slow speeds on Ethereum are caused by the consensus algorithm, which requires
the majority of nodes in the network to approve each transaction. This has to be done in
sequence – one operation after another, meaning that transactions cannot be parallelized.
While switching to PoS will already put Ethereum Classic Vision in a good position to
solve the scaling problem, additional measures will need to be take to make the network
as fast as necessary to satisfy the needs of future growth.
The best solution proposed so far – and the one that Ethereum Classic Vision will
implement – is sharding. The concept is already widely used in databases and is expected
to become the new standard for cryptocurrency network in the next two years. In this
model, the entire network state is divided into a number of fragments, or shards, each of
which has a decentralized structure. Since each node only processes information related
to its shard and does need to occupy itself with the transactions happening on other
shards (except for cross-shard operations – see below), processing of payments is
effectively parallelized, with the capacity increased manifold. Each shard also has its own
set of validators, all of whom have to stake enough coins to be included in the validator
pool (see section 2.1. - PoS).
To implement sharding, Ethereum Classic Vision will introduce a special beacon
sidechain that will function as a source of pseudorandomness when selecting validators
for each shard. A sharded system is more vulnerable to attacks, since it potentially takes
only 1/n of the hashrate (where n is the number of shards in the system) to compromise a
whole shard. The key to protecting the Ethereum Classic Vision network against such
attacks is to ensure that validators are selected pseudorandomly (that is, the selection
process for all shards has a common source of randomness) and that they cannot know in
advance which shard they will be assigned to. The beacon chain will also contain
information about the current state of each shard, acting as a connecting link between
them, though the sidechain by itself forms a separate Merkle tree and does not act as a
part of the Ethereum Classic Vision blockchain.
When an ETCV payment is sent by a user on one shard to somebody on another shard, a
system of Vision Receipts will be used to process them. An initial transaction sent to
Shard 1 reduces the Ethereum Classic Vision balance of User A (sender) and creates a
receipt, which is stored separately from the main state; a second transaction, which
of User B (recipient) is increased accordingly.
We expect that the introduction of sharding will allow to increase the capacity of
Ethereum Classic Vision to 10 000 tps in the first implementation stage with 100 shards
in the system. We expect to launch the beacon chain and begin sharding in the testnet by
August-September 2019. In the second phase (scheduled for early 2020), we expect to
introduce a dynamic growth of the number of shards.
IPFS data storage integration
For all dApps and blockchain platforms that must store large volumes of data, the file
storage challenge becomes just as important as the scaling challenge. Indeed, projects in
fields as varied as medical care, insurance, design, coding, and social networking rely on
heavily on files created by users – mages, code repositories, videos, technical manuals,
etc. However, blockchains themselves cannot be used to store such items – they simply
were not designed for the purpose. Standard blockchain transactions are cheap because
the amount of data transmitted is limited to several bytes. Any attempt to store larger files
on a blockchain would push transaction fees beyond a reasonable limit – for instance, it
would cost thousands of dollars to cost 1 GB of data.
For this reason, any blockchain project that requires data storage presently has to use
centralized servers to store files, which goes against the concept of decentralization and
creates single points of failure for the whole system. Luckily, new, far more decentralized
solutions already exist and will be implemented by Ethereum Classic Vision as part of its
plan to become a major platform for dApp development.
Decentralized data storage implies renting out one’s unused hard drive space. All kinds of
users can be included in such a network – from owners of average laptops and home
computers to mining farms seeking to compensate for falling profits. The leading solution
in the market is IPFS, or Interplanetary File System, which is fully decentralized,
operational, and already connects many thousands of users.
IPFS has a lot in common with the more advanced blockchains, though it uses a very
different technology. Each large file stored in the system is sharded, with each shard
receiving its unique cryptographic hash (just like a transaction on a blockchain). All
hashes are stored in a table, which is updated automatically whenever a new file enters
the system. Each shard of each file is stored in numerous copies by multiple users,
making sure that it remains available even when some users are offline. For storage of
proprietary and confidential data, standard cryptographic mechanisms can be used (both
symmetric, such as SHA-256 hashes, and asymmetric – taking into account possible
threats presented by the advance of quantum computers to asymmetric cryptography as a
It is important to note that IPFS itself is not a project or platform – it is an underlying
protocol that can be easily integrated with any other system, including Ethereum Classic
Vision. Our implementation of a decentralized data storage module will introduce
monetary rewards for storing files (paid in ETCV coins). Prices for storage will be low
compared to traditional cloud storage solutions like Amazon and Azure (and below the
pricing levels of other decentralized storage platforms like Storj), while download speeds
will be high enough even for such resource-hungry applications as design and rendering
Storage fees will contribute the necessary revenue to promote further development of the
Ethereum Classic Vision network in its more advanced stages, including research into
superquadratic sharding, second-layer payment protocols, and hardware-driven consensus
According to the Ethereum Classic Vision implementation plan, the introduction of our
Vision Storage module will closely follow the launch of the dApp platform and is
scheduled for July-August 2019. Full integration of the storage module and rewards
system is expected in late 2019.
The section describes the major steps in the process of implementing Ethereum Classic
Vision and its modules, starting from the snapshot of the Ethereum network. A detailed
roadmap is provided, listing both development stages and a promotional campaign.
ETH network snapshot and distribution
The initial distribution of free Ethereum Classic Vision coins will take place after a
snapshot of the ETH network, which is scheduled for January 11, 2019 (20:00 GMT).
Taking a network snapshot constitutes a standard practice for cryptocurrency hard forks
and produces a list of all blockchain addresses containing a certain coin or token.
Any user who is found to hold Ethereum coins in their private wallet at the moment of
the snapshot will receive free Ethereum Classic Vision coins at a 3:1 ratio. For example,
a user who holds 100 ETH in a private wallet (such as Coinomi, Jaxx, or Ledger Nano)
will be able to claim 300 ETCV for free. It is crucial to stress that only ETH stored in
personal wallets (desktop, mobile, or cold storage) are eligible for free ETCV after the
hard fork. Users who hold their ETH in exchange wallets cannot claim the reward.
Once the snapshot is completed, ETH holders will be able to dispose of their coins as
they wish, including transferring them to an exchange, selling them, or exchanging them.
The amount of free ETCV airdropped to ETH holders depends only on how many coins
they own at the moment of the snapshot – not before or after it.
Q3-4 2018 ETH hard fork ideation & development; formation of the team; negotiation
with and signing up first advisors
Jan 11, 2019 Snapshot of the ETH network & distribution of Ethereum Classic Vision
Q1 2019 Introduction of the dApps platform (initially with new dApps residing on the
mainchain and support for migration from Ethereum and Ethereum Classic virtual
machines); establishment of key technological partnerships; listing Ethereum Classic
Vision at a number of major digital exchanges; testing the P2P exchange module
VisionDEX; security audit of VisionDEX smart contracts; expanding the team and
adding more developers; launch of a large-scale marketing campaign.
Q2 2019 Implementation of the P2P decentralized exchange module; onboarding of an
advisory board specializing in sharding and decentralized storage technology; work on
the sharding protocol; development of the decentralized storage system based on IPFS;
testing the PoS consensus protocol; roadshow covering major coding events and
hackathons in Europe and Asia.
Q3 2019 Switch to the PoS consensus protocol; integration of the dApp platform with
VisionDEX; Sharding implementation; testing of the file storage module and the
associated rewards system; attracting advisors from the field of the zero-code movement.
Q4 2019 IPFS integration with rewards for storage space providers, launch of a
marketing campaign for the storage system; establishing partnerships with blockchain
foundations in North America and East Asia; expanding the number of digital exchanges
where Ethereum Classic Vision is listed.
Q1 Beta testing of additional features for VisionDEX (margin lending, limit orders, etc.)
Q2 2020 Integration of new exchange features: stop-loss, limit orders, margin trading;
implementation of a Sidechain Development Kit for the dApp platform
Q3 2020 Implementation of cryptocurrency derivatives trading; introduction of a
migration tool for dApps developed outside of EVM (NEO, EOS, Lisk, Stratis)
Q4 2020 Integration of a zero-code, drag-and-drop dApp development module