The second largest digital asset in the market, Ethereum (ETH), is going to experience a network upgrade as soon as in ten days. After delaying the so-called Constantinople upgrade several times, the network upgrade is going to take place at block number 7080000.
This upgrade is very important for Ethereum’s development. Indeed, the digital currency will have a reduced issuance of ETH as a reward for miners. Each block will be giving miners 2 ETH rather than the 3 ETH that they were receiving a few weeks ago. This is very bullish because there will be less ETH for users in the market.
If there is a constant or growing demand in the asset, this could be very positive for the price of ETH.
This hard fork is the second phase of Metropolis. The first two stages of Ethereum were Frontier and Homestead. After implementing the Metropolis stage, the network will move towards Serenity, introducing Proof-of-Work (PoW) and Plasma on Ethereum.
The Constantinople hard fork was going to be launched during 2018, but as the network experienced some issues, it was not possible to launch it on time. ChainSecurity discovered that one of the Ethereum Improvement Proposals (EIP) would make some smart contracts vulnerable to Reentrancy attacks. However, Ethereum developers decided to solve this with two hard forks taking place on the same block. That means that the first hard fork will be implementing the five EIP proposed, while the second will disable the protocol that could enable Reentrancy attacks.
The hard fork is expected to take place on February 28, 2019. We are currently more than 43,900 forks away from the hard fork to take place.
At the time of writing this article, Ethereum is the second virtual currency in terms of market capitalization with $15.28 billion. Each ETH coin can be purchased for $145 and in the last 24 hours, it grew more than 12%.
One of the reasons behind this price increase is the fact that the hard fork is bullish for the Ethereum network.