Category: Tenx (PAY)

Metropolis / Byzantium Hardfork on Ethereum — this is what you need to know

Below is a transcript of the video.

What are the key things you should consider with the upcoming metropolis hard fork?

Welcome to our TenX YouTube channel.

My name is Julian, I’m one of the co-founders of TenX.

The reason I’m making this video here on Ethereum and the upcoming Metropolis hardfork is TenX is a PAY token, as an ERC20 token running on top of Ethereum. Hence, anything that happens to the underlying “computer” will affect us as well.

This is what I will address first: What exactly is the Metropolis update?

Let me use an analogy. Let Ethereum be a computer. At the moment, the operating system (OS) is Homestead. This is similar to iOS 10 on the iPhone. It will soon be upgraded to Metropolis, which includes many updates, which I will go into soon.

First of all, when Ethereum implemented all of these things, they realised that certain aspects of it was challenging. Hence, this update was split into two parts, Byzantium and Constantinople. The key updates, those that are extremely relevant to TenX, are included in Constantinople. Byzantium has upgrades that are targeted at developers, in particular improvements to the smart contract. This update also includes something called zero-knowledge snarks (zk-snarks). This is an advancement in privacy, which has been tested for quite a while on the testnet, and has finally been included in the mainnet with this update.

Next, Byzantium also includes an 18 month delay of the difficulty bomb. This is relevant because it ensures that the mining difficulty of Ethereum remains at a reasonable pace instead of increasing exponentially. One of the key things that we at TenX would have like to have been implemented is known as the Casper protocol. This is a contract that allows parties to stake their Ether to facilitate the consensus of the network. This will allow them to be rewarded for staking. This is relevant to us because we could use a similar contract to stake their PAY tokens and receive their rewards. Until this is possible, it is likely that we will use a bypass method.

Personally, I believe that this second part of the update, Constantinople, will not arrive until towards the end of the 18 month extension. We are definitely going to have a workaround to ensure that every PAY holder gets their rewards.

Generally, when we talk about a hard fork, it means that you need to decide which fork you are going to follow. However, because Ethereum has a large degree of centralisation, due to the presence of the Ethereum foundation, and there is little downside to upgrading to Byzantium, we expect that over 99% of the nodes, of the service providers will be upgrading to Metropolis. This ensures that it is a non-contentious fork. Hence, there will be little to no consequences for the average Ethereum holder. You will be able to use your Ether just like before. Whether you use zk-snarks is completely up to you, and the updates on the smart contracts affect developers more than users.

Now, let’s talk about future updates that are projected for the Ethereum hard fork.

How does this affect the price of Ether? Personally, I do not like to talk about the price in the short run. Yet, I believe that this is an optimistic outlook, due to the removal of uncertainties. I believe that this will affect the entire Ethereum ecosystem.

I will make another video on Bitcoin2X and Bitcoin Gold, as this also affects the entire community. There you will see something completely different, because it is a contentious hardfork unlike the Ethereum system.

I hope you enjoyed this video. We are working really hard in the background to get everything out, and I hope that you will continue to support us. Thank you for your support, for your trust and for being part of our community. For those who have already received our cards, congratulations and I hope you are already using them. For those who are still waiting, please continue to be patient with us, as we are shipping and delivering every day.

For those outside of Europe, we have been working on solutions and we will have very exciting announcements soon.

With that, all the best in the meantime.

Thank you so much.

Yours truly,

Julian


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