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โ๏ธ What is eCash (Part 9)
The launch of the eCash brand on July 1, 2021 arrived just in time. By giving the project a fresh new look, it had the opportunity catch the tail end of the 2021 crypto bull market that briefly rocketed XEC into the @CoinMarketCap top 30.
However, much like BCH in 2017, XEC's moment in the sun was short lived. By the end of 2022, the market cap of eCash had fallen by more than 90%, and its overall position in the cryptocurrency landscape was falling just as quickly.
As disappointing as this might have been, there was one key factor that made all the difference between this bear market, and the one I'd experienced previously as part of the BCH community. Due to the presence of a built-in funding mechanism, the eCash developers had sufficient funding that allowed them to focus on building during the bear market rather than wasting their energy arguing with the community about raising funds to keep the lights on, even if barely.
Their #JustBuild mindset kicked in, and from 2022 to 2023, eCash supporters saw the fruits of ABC's labor. The first major roadmap item ABC completed was Avalanche post-consensus, which was launched on September 14, 2022. By combining Nakamoto consensus with Avalanche consensus, this meant that the eCash network was now virtually impossible to 51% attack, and any transaction confirmed in a block could be considered final and therefore irreversible.
Recognizing this technical achievement, exchanges like @binance and @upbitglobal began crediting customers' XEC deposits after only 1 confirmation, while Bitcoin and Bitcoin Cash deposits could still require 6 confirmations or more depending on the exchange.
Next came the launch of staking rewards. After the November 15, 2023 upgrade, eCash would become the first Bitcoin fork in history to incorporate proof of stake in addition to the battle tested proof of work algorithm that had formed the foundation of its security model for the first fifteen years of its existence.
By offering staking rewards to those who ran an Avalanche enabled eCash node, it added a new incentive model to encourage holders to run their own staking nodes. This would provide a sybil resistance mechanism to prevent anyone from cheaply spinning up countless dishonest nodes to attack the network. The staking rewards were initially set to be 10% of the block reward, and its impact was almost immediately felt as we saw a rise in both the number of eCash nodes as well as the total amount of XEC staked, increasing both the network's decentralization and security.
In conjunction with the launch of staking rewards, Bitcoin ABC also announced in the November 2023 upgrade that the infrastructure funding plan (IFP) would go from 8% of the block reward to 32%. This was done to ensure there would be sufficient funding for the project going forward even if the price of XEC continued to remain low, especially given the upcoming halving in April would reduce the block subsidy by half.
While certain outsiders balked at the news, the eCash community seemed to embrace it as the total amount of eCash staked went up following the announcement. It demonstrated the cultural differences between the BCH community that had rejected the original IFP proposal back in 2020, and an XEC community that values pragmatism and understands the importance of rewarding good work.
It should also be noted that only half of the IFP money goes directly to Bitcoin ABC, with the other half being governed by the Global Network Council (GNC). During the bear market, the GNC approved projects such as @thepaybutton and the Chronik indexer to add value to the eCash ecosystem. The latter made news in early 2024 when it was announced that an experimental version of the indexer had been successfully integrated directly into the ABC client through the hard work of @TobiasRuck and @Bitcoin_ABC.
This was yet another first for a Bitcoin chain. The integration of an indexer directly into the node software is something that had been proposed many times by the Bitcoin Core developers, but much like the moving of the decimal point, had never been successfully achieved. This advancement is important because it will make it easier for developers to build applications on top of eCash. It simplifies the logic and reduces the work of having to manage different programs that could create incompatibilities versus being able to use one fully integrated offering.
As you can see, there's a reason that the unofficial mantra of the eCash project is #JustBuild. There's still plenty of building to come and plenty to look forward to, with the upcoming launch of Avalanche pre-consensus being the most important of all. This is something that has been on ABC's roadmap since their days leading BCH and will catapult the eCash project to a new realm of scalability and usability.
After Avalanche pre-consensus, eCash transactions will offer instant finality and users will no longer need to wait for block confirmations or worry about potential double-spends. This will pave the way for new use cases such as the ability to create subnets and perform fork-free upgrades. And while eCash has already made plenty of progress since its inception, you can rest assured that there's still much more to come.
So what is @eCashOfficial?
To me eCash is about leveraging the best techniques available to create the best technology. It's about not giving up, and not being afraid of the struggle that you might have to endure when making the difficult choice. It's about standing up for what you believe in in order to forge a new path forward. It's about balance and combining the best of both worlds. It's about Nakamoto and Avalanche, proof of work and proof of stake, store of value and medium of exchange. I believe eCash serves as a symbol of both evolution and revolution, of technology and freedom, as it seeks to redefine the meaning of wealth for this generation and the generations to come. To be continued...