Ethereum Constantinople hard fork is coming next month with features like difficulty bomb and reward reduction. With mainnet date not decided yet, the upcoming hard fork has everyone’s eyes on the Ethereum and how it will affect its prices.
Constantinople hard fork on TestNet in October
At the end of last month, Ethereum core developers held their regular meeting and discussed the testing of the Enterprise Integration Patterns (EIPs) for the Constantinople hard fork. At the time, regarding the possibility of a second hard fork for having so many changes bundled together, it has been stated by one of the devs,
“If we delay the time, we would want more features to this particular [Constantinople] hard fork and we should discuss if it’s good to have many changes in one fork, or it’s better to have less changes in many hard forks.”
But now it is being confirmed that Constantinople will go into testnet next month. This four-stage development plan is expected to be activated on a cross-client testnet called Ropsten in the second week of the October i.e. October 9th. As for the mainnet it can be expected to go live as soon as November or it could even take a year.
Though the exact block number for the testnet is yet to be finalized, according to a proposal on the GitHub the suggested block number is 4,230,000.
Hard Fork features: Difficulty bomb & reward reduction
The upgrades involve EIP 145 whose focus is on effective information processing method i.e. bitwise shifting while EIP 1052 is for improving the large-scale code extraction on Ethereum.
Vitalik Buterin is behind the EIP 1014, which aims to enhance the facilitation of off-chain transactions and state channels-based scaling solution.
There is another one here i.e. EIP 1234 which is aiming to reduce the block mining reward from 3 Ethereum to 2 Ethereum. It further delays the difficulty bomb by 12 months.
Hence, the hard fork is on track for November or next year as there isn’t great rush. Vitalik Buterin has been quoted as saying by Finder, “It’s totally not urgent. We could probably have three months of safety and likely even more.”
The delay of difficulty bomb is seen as a promising sign by many as it is expected to further cement Ethereum’s position at the front in the market.
Developers are working on improving the Ethereum blockchain as a whole and experts believe there isn’t any other project yet that have a such an impact on smart contracts.
All of these updates means nodes have to either adopt the updated EIPs or start working as a separate entity. Though these updates aren’t of much significance to an average user, as these won’t be bringing noticeable changes for the end user, these changes can surely be beneficial for the investors as the prices of the world’s 2nd largest cryptocurrency in the world are expected spike.
Analyzing the Ethereum bulls
A bullish signal for the investors especially when the market is already experiencing the bulls. For the past 3 months, Ethereum has been on a downward spiral touching the $170 mark at one point as shown in the below graph. This has been to a part due to a drop in the ICOs and furthermore, a majority of the projects having sold their Ether holdings.
However, after constantly dropping for the past 3 months, for about past five days, Ethereum is surging in tandem with the crypto market. At the time of writing, Ethereum has been sitting at $238 with a market cap of $24.3 billion.
As usually happens in the crypto market, developments raise the expectations and hopes of the investors, raising the demand of a crypto asset in the market. And Constantinople can further boost these bullish sentiments.
Not to mention the fact that improved functionality of the network will bring in more users as well. This also shows the ability of the project to keep on working and constantly making improvements. The wait, for now, is for October!
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Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.