The Magic of CehhCoin
A Better Take on Scalability and Token Distribution
About a year and a half ago, the idea of CehhCoin was born. At least the Cehh part was. It took a few months of refining the concept until it evolved to become the modern CEHH we love today.
It was around Mid-2017 when I noticed there was a major gap between users and sellers, even on platforms for tech-savvy users. In particular, Discord had no actual crypto integration despite hosting hundreds of crypto communities. Earlier that year I developed a Discord bot that was picking up popularity, so I thought that maybe I seize the opportunity and create my own DApp as a payment gateway. Thus, the first iteration of CehhCoin was born: CehhCoin was pegged to ETH. Users could send any amount of ETH to the CehhCoin contract, and it would give back that amount times a multiplier. Likewise, users could send back CehhCoin and retrieve their ETH. It worked pretty much flawlessly, and it is still active to this day on Kovan.
The problem remained: a website isn’t enough. Users aren’t willing to open a website just to send transactions. In fact, I was surprised to learn that a vast majority of Ethereum enthusiasts didn’t even have either Mist or MetaMask. While investor adoption may be rising, user adoption is appalling in comparison. Perhaps I needed to widen my audience so I could catch more users who at least knew how to send transactions.
For the second iteration of CehhCoin, I scrapped the governance contract and the pegged value. I stood adamant against doing an ICO; I wasn’t joining the tragedy of the commons and fueling the rising tensions. Instead of having a pegged value I opted to let users pay to create new CEHH, but unlike the original CehhCoin, this time users wouldn’t be able to sell it back to the contract. (This is some way of ICO’ing, but burning that ETH or donating it to specific causes is far from being a cash grab Status-style.) I thought that removing the peg and allowing speculation would at least attract curious investors who would then spread the word. But this didn’t seem to work either.
By this point, I had lost a lot of confidence in Ethereum’s adoption. Investors didn’t know what they were buying. Users didn’t actually know how to use DApps, the whole purpose of Ethereum. Developers couldn’t sell anything other than empty promises. I decided that a decentralized token that could outlive fevers and teams needed to go beyond the standard model. This is how CehhCoin became ERC891.
A Good Idea Meets Bad Timing
When the issue for ERC891 was opened, the community was quick to shot the proposal down. It was published around the time that Proof-of-Stake support was at its highest, since the January bubble had triggered a myriad of problems stemming from the low-scalability of the network. I believe that timing was the main point against the proposal, since 1 month after ERC891 was dismissed for being a wasteful Proof-of-Work hybrid, ERC918, a pure Proof-of-Work proposal was merged.
This was very demoralizing, but CehhCoin was deployed on the mainnet and was working perfectly. Regardless of competition or not, the model was performing as predicted.
CehhCoin and ERC891
To quote the ERC891 abstract, the proposal states that
[t]he ERC891 provides an extension for ERC20 tokens that adds an interface for distribution. ERC20 tokens are often distributed via auctioning or airdrop, both of which fueled a bubble during 2017 and empowered exit scammers. With ERC891, the distribution model can be adjusted between the traditional ICO model and fully decentralized, PoW distribution.
There are many different ways to implement your own version of ERC891, ranging from pure PoW to pure pre-mine. For simplicity, I will explain how the pure PoW implementation works, since the hybrid models simply split the distribution.
The idea behind this ERC came from the need to generate random numbers on-chain. DApp programmers should know the nuances and caveats behind trying to perform RNG on-chain, but users should simply know that there is no way of implementing pure RNG on-chain. The solution was to shift the problem’s perspective and use randomness in a different way.
Simply stated, ERC891 leverages on the only true RNG around Ethereum: private key mappings. Instead of rolling a dice and asking everyone to verify the roll, private key mappings to addresses implicitly do that already. In the case of CehhCoin, a miner needs to find a private key that rolls into an address that ends with the highest number possible. With that roll, the miner already proved that the address was found by him, and we all know that we can’t map addresses to private keys.
In the specific case of CehhCoin, the amount of CEHH that an address holds is equivalent to the last 8 bits of the address’s numeric value. The choice for this system was to make it accessible enough for users to be able to mine by hand, as well as variable enough to give miners an edge. In the end, CEHH’s economic model is inspired by its spiritual father, DogeCoin.
What makes CehhCoin transcend time and scaling is the nature of address mining. ERC891 uses the concept of PoW, but it doesn’t unnecessarily clone the block model. In fact, there is no point in building a fake blockchain on top of a blockchain. The core difference between blockchain PoW and ERC891 PoW is that blockchain PoW is sequential. Miners have a race condition to find a target difficulty, which globally resets after each victory. CehhCoin’s PoW doesn’t have a race condition. This means that regardless of whether the users are mining by testing addresses on MEW or using an ASIC, they are guaranteed to find some CEHH. The race for blocks changes to a race against inflation, somewhat like DOGE’s model, but asynchronously.
More importantly, CEHH doesn’t require a steady hashrate backing up the token. Miners can completely disappear one day and there will be no disturbance on the functioning of the contract. This is especially important because, as a token, we cannot expect the same treatment as a full blockchain. Token miners are meant to be those who ASICs and GPUs pushed away. We could even say CEHH follows Satoshi’s original vision of distribution.
I am not Satoshi Nakamoto by any stretch of the imagination, but the very least I can do as someone who respects the ideals he represents is to let CehhCoin be itself, not me. I wish there was a better way to raise awareness about the existence of CEHH without turning it into me. That’s why I’m asking you to be Cehhtoshi.
You are Cehhtoshi.