The Constantinople hard fork has been delayed due to security flaws on January 15. Just a few hours before the hard fork, Chainsecurity, a smart contract security audit firm discovered a flaw within one of the proposed improvement upgrades included in this hard fork. This produced the market to drop between 6% and 7% on January 15.
However, there are some analysts that believe that this hard fork is going to be very positive for the Ethereum and its price in the future. Until now, there is no information about when the upgrade will be implemented. Developers need to settle a new date for the hard fork.
This network upgrade that network is going to experience in the near future will be providing some improvements to the Ethereum network. For example, one of the new improvements includes new ETH supply reduction of 33%. Miners will be receiving 2 ETH instead of 3 ETH as they received in the past.
In general, hard forks pose serious risks for networks if there are two or more groups trying to create their own networks. This has a negative effect on the networks and tends to split the community. When that happens investors tend to sell their funds and the network cannot fully recover from it.
Back in 2017, Bitcoin Cash (BCH) decided to fork from the Bitcoin blockchain and create its own network. A few months ago, Bitcoin Cash experienced a new hard fork in which Bitcoin SV (BSV) supporters decided to create their own chain as well. There are other hard forks such as Ethereum and Ethereum Classic.
In this case, it’s different. According to Mati Greenspan, a senior market analyst at eToro, commented about it:
“Sometimes when there is a disagreement among the community about the upgrade some members will choose to keep the old version of the blockchain alive and we see a split. The most famous cases of this were when Bitcoin Cash split off of Bitcoin on August 1st, 2017 and when Ethereum split with Ethereum Classic back in 2016.”
Lane Rettig said during a conversation with Bloomberg that he cannot imagine a less contentious hard fork than this one. Nevertheless, if the hard fork had been implemented, it would have created difficult situations for the community. Indeed, attackers would have had the opportunity to exploit a loophole in the coding that would have resulted in the loss of several ETH.
With inflation reduced 33% for the coming months, investors could see ETH price grow with an increased demand if there is a new bull market. This would also reduce selling pressure from miners after having just 2 ETH to sell per block rather than 3 ETH.