The news was announced Monday 8th July through several social media announcements from the British based Fintech company Electroneum. In a 17-minute YouTube video, CEO Richard Ells explained the key and ground-breaking developments undertaken by the firm’s team over the weekend, which in summary include:
- A 75% reduction to block rewards
- A move from Proof of Work (PoW) to Proof of Responsibility (PoR)
- Implementation of a ‘moderated blockchain’
- Use of NGO’s and Charities to mine Electroneum and claim the block rewards
- Negated the chances of a 51% attack to zero
- Reduced hashing power required
On Friday 5th July all users were told that transfers and transactions would be offline for the weekend whilst the company carried out a software update. At the time Electroneum’s mobile miner was also offline, leading many to wonder the extent of the update.
The work was expected to finish by 5 pm BST 8th July but the news was released ahead of schedule as full functionality came back to the budding fintech firm. In the process of Electroneum’s update, the firm has managed to engineer 2 new blockchain processes which include the PoW and a moderated blockchain system, thus making the company the world’s first.
The news means that the Electroneum blockchain is now one of the most secure and eco-friendly in existence and operate on a similar level to what is expected of Facebook’s ‘Libra’ project, expected for release early 2020.
Other benefits arising from the soft-fork include an increase in scalability, faster on-chain transactions, enhanced security and the on-boarding of up to 25, yet to be named NGO’s and charities.
CEO, Ells stated that :
With this development we have engineered two new blockchain processes; Proof of Responsibility and Moderated blockchain. Delivering all the benefits of decentralisation whilst adding new layers of protection.
In the released YouTube video, Ells explains how the use of NGO’s within the mining operation is both beneficial to their immediate benefactors but also the entire community. The organisations are reported to have been selected as trusted parties from countries to which Electroneum expects to operate, moving forward.
In the release Ells states that ‘The move to what we have coined as Proof of Responsibility (PoR) allows us to educate NGOs in our target regions about the benefits of cryptocurrency.’ Ells expanded on this by adding ‘Furthering the understanding of cryptocurrency by allowing the NGOs to directly benefit from the block reward has never been done – and it opens the doors to the NGOs using ETN on the ground directly with the unbanked and underbanked.’
As expected, the news from the Electroneum team has already drawn a large media audience with more expected over the coming days. Electroneum has started Q3 of 2019 on a very positive footing. With the anticipated expansion of on the ground services to another 20 plus countries, this trend is set to continue and escalate into 2020.