Ethereum Proposal is Primed to Delay ‘Difficulty Bomb’ and Reduce Block Reward

John Medley

Earlier today, 14 Ethereum developers met over video conference to discuss changes to the proposed ‘difficulty bomb’ and block reward.

They agreed to support the EIP1234 that would decrease block reward from 3 ETH to 2 ETH as well as delay the ‘difficulty bomb’. The proposed EIP1234 would be added to the Constantinople upgrade, scheduled for October.

The postponement the difficulty bomb – a feature designed to increase the difficulty of mining rewards, making mining less attractive – has been received well by the community despite the fact it is considered a controversial topic - especially for miners invested heavily in hardware.

Many traders are in favour of the 2 ETH block reward as it reduces Ethereum’s inflation rate which is currently greater than that of Bitcoin.

It is thought that the reduced mining reward would constrain the supply, in turn reducing the selling pressure from miners. According to a Twitter thread from Eric Conner, the Ethereum network has paid $6.6 billion to miners over the past 365 days:

Some members of the community, however are not happy with the lack of discussion. Ethereum miners and investors who were present at the previous meeting regarding the Constantinople upgrade were excluded from today’s meeting. Some have seen this as a controversial decision, because the difficulty bomb and block reward reduction is likely to have a greater impact on miners than developers.

With over a month until the Constantinople upgrade, it remains to be seen whether the wider community of investors, traders, miners and developers will rally in support of EIP 1234.

Token Taxonomy Initiative Launched By Enterprise Ethereum Alliance, Microsoft

The Enterprise Ethereum Alliance (EEA), an organization focused on “developing open, blockchain specifications” and standards that enhance “interoperability for businesses and consumers,” is working with Microsoft on an initiative that will help companies issue the appropriate type of crypto tokens for their requirements.

Referred to as the “Token Taxonomy Initiative,” the token development project will be built and managed using Ethereum, Hyperledger, Digital Asset’s DAML, and R3’s Corda technologies.

EY, Microsoft, Digital Asset, Banco Santander Join Token Taxonomy Initiative

Some of the prominent members of the Token Taxonomy Initiative include JPMorgan, IBM, Ernst & Young, ConsenSys, Blockchain Research Institute, Microsoft, Web3 Labs, R3, ING, Intel, Komgo, Clearmatics, Digital Asset, and Banco Santander. This, according to announcement made on April 17th, 2019, which also revealed that the token creation initiative will be open and accessible to all users who want to contribute to its ongoing development.

In order to facilitate the creation of project-specific tokens, there will be several workshops conducted and there will also be a Github repository where users can publish their research findings. Additionally, the repository can be used to upload test data which may be related to various blockchain-based token implementation projects.

Standardizing Tokens May Lead To “Great Economic Opportunities”

Commenting on the launch of the Token Taxonomy project, Ron Resnick, the Executive Director at the EEA, remarked:

We are doing this for the greater common good. Standardizing tokens across all networks could hold the key to one of the greatest economic opportunities in modern history.

Marley Gray, the Principal Architect at Microsoft, who has been credited with originally proposing the Token Taxonomy Initiative, noted that his colleagues had conducted a research study - which involved asking various investigative questions. Responding to these questions, Microsoft’s internal business partners mentioned that they were interested in learning more about and improving the existing software licensing process.

Microsoft’s business associates have now reportedly recommended using tokenized and smart contract-enabled software licenses - instead of the traditional licensing process which requires users to register complex holographic IDs for each software license.

In statements shared with Coindesk, Gray explained:

The idea is to use a workshop with business people to describe a token completely that services their business requirements. That token itself is composed of reusable components so another group can use those same components to define a slightly different token without redefining all the things that initial group did – so it creates this framework.

"Drag And Drop" To Create Customized Tokens

Gray added that businesses would be able to “grab a non-fungible token and drag it over and then start from a pallet of behaviors” and “drag those behaviors.” This, in a manner which would be similar to how “drag and drop” works on GUI-based operating systems such as Windows and Linux.

According to Gray, this is a user-friendly and intuitive way of defining tokens as users can use easy-to-follow steps and a visual interface to create and issue cryptographic assets

Gray further noted:

An individual [token] behavior could point to a snippet of code for a particular platform, i.e. DAML for some particular behavior would link me to a particular piece of DAML code, or the same for Solidity, or Chaincode.