With seemingly unknown motives, an anonymous actor exploited a bug in contracts that serve the library function for Parity’s multi-sig cryptocurrency wallets on November 6th. The resulting act was the library effectively committing suicide, with over 500,000 Ether getting frozen. It was unclear how Parity would regain access to them, but now it looks much more possible to recover the crypto.
Parity’s CEO Jutta Steiner hinted at the possible restoration of the frozen ETH through partnering with Ethereum new fork, Edgeware. Given the stakes, it is apparent that Edgeware presents itself as a clone of Ethereum, with differences present being Edgeware’s on-chain governance. The similarity could allow Parity, through its blockchain Polkadot, to get back their frozen ETH in the form of Edgeware’s edge tokens.
How Edgeware Works
Edgeware remains one of the few projects to make significant strides in the form of actual developments on true on-chain governance. That is despite the blockchain being based on Ethereum-based smart contracts working under such a model of governance.
Another exciting aspect of Edgeware is the use of a Proof-of-Stake protocol instead of Proof-of-Stake. Edgeware clients will need to lock their ETH in a smart contract first.
Thom Ivy, Edgeware’s representative, explained,
“each user will have their lock drop contract-unlike other launches where a single massive smart contract runs the distribution.”
Now with the lock drop contracts ready, Edgeware’s Genesis block would launch, and each would be allowed to validate and calculate their locked ETH to a similar value in the form of Edgeware.
According to the whitepaper,
“individuals will be able to validate the total amount of Ethereum locked or signaled by looking for both the Locked and the Signaled Events and calculating the corresponding balances on Edgeware.”
The Lockdrop contract further explains the interesting outcome by indicating 91 edge per ETH for three months’ worth of locking. Six months would get one 182 edge. Assuming, this shows more edge for those who lock for a longer period.
Presumably, Parity’s scenario makes it’s a perfect fit for Edgeware’s Locking protocol. The frozen multi-sig wallet bearing at least 500,000 ETH would add up to almost 91 million edge tokens in less than six months of locking.
Additionally, Parity is also set to benefit with the launch of Edgeware’s genesis block. With no ICO in the books, Edgeware also is planning on distributing 90% of its initial 5billion edge supply to its patrons, community participants, open-source contributors, and test-net users. From the distribution, Commonwealth Labs, the firm behind the Edgeware project is set to get about 4.5 %( 250 million) of the Edgeware tokens. Parity Technologies would get 3.0% with the rest of the share going to the other stakeholders. Later on, Edgeware plans to allow dots from Polkadot to claim edge.
On a more intellectual level, the argument remains that much of this is still experimental and much of it yet unknown. To an extent, Edgeware design appears effective for Parity; there is little evidence to show it in practice.