Ethereum (ETH) $28 Billion Crypto Market Cap Is Expecting Big Upgrade In October Update
It has been unveiled that Ethereum is scheduled to undergo an upgrade and is currently in its testing phase. According to Coin Desk who reported on this matter, the upgrade scheduled for October is called, “Constantinople” and it seems like another problem is likely to come out of it. In particular, it involves establishing balance among “diverse stakeholders”.
In addition to the problem of stakeholders, it seems like another piece of code will be activated, worsening the situation in hand, that is, Ethereum’s already existing reduced block times. Called the “difficulty bomb”, if the necessary action is not carried out, Ethereum will have a harder to no chance to process transactions, ultimately bringing the blockchain down altogether.
Ethereum is currently experiencing a domino effect, that is, if the difficulty bomb isn’t stopped, then miners will get a reduced cut, and with less profits comes an instable network.
Here are the main factors to consider in terms of the upcoming fork:
Establishing A Balance For Every Player Involved
According to Coin Desk, there are three ethereum improvement proposals (EIPs) that will be considered during its hard fork. The three dubbed, EIP 145, EIP 1014, and EIP 1052 will supposedly be integrated in Ethereum’s code. This is done to increase flexibility, scalability and speed.
It has also been reported that several of its stakeholders have expressed their concerns regarding code changes on social media platforms. Since the parties involved did not come to a final say, a follow-up meeting has been scheduled for Friday, August 31. The Chairman, Hudson Jameson was quoted saying,
“I honestly don’t know how to make a decision. I don’t know how we’ll go from here.”
Another argument made was that of Ethereum’s security, as CTO of a mining firm dubbed, Brian Venturo proposed EIP 1295 as being the only factor that can protect its security. He further added that reduced block reward might result in,
“pricing out a large proportion of hardware […] such hardware might instead become available for attacks.”
Ultimately, miners want one thing, traders want something else and stakeholders are worrying over everything, making it harder to arrive to a sound conclusion.
Problems Associated With EIP 1295
Founder of Ethereum, Vitalik Buterin does not seem for the EIP 1295, as he expressed fear in what it might bring.
Buterin is not the only one to hold this viewpoint, as fund manager, Spencer Noon is not only “unsupportive” of Venturo’s proposal, but also sees this fork as,
“nothing to do with network security – block reward reduction would hurt their bottom line.”
In response to the different perspective taken by the latter two, Venturo claims to understand the problems associated with,
“ETH denominated issuance” but thinks it’s ideal to “adjust it under the current market conditions […] to put undue risk on the security scale of the network.”
Reducing block reward to 2 ETHs, as per Casper developer Danny Ryan, is a reasonable and balanced decision that might be appreciated by everyone involved. With the GPU vs ASICs miners’ issue in place, removing hardware has also been suggested as a “reasonable compromise”.
Overall, it is clear that Ethereum’s upgrade will be highly anticipated given the several approaches it can take. Regardless, if one factor gets hit, it appears the entire system will go down.
The report also noted that if a number of nodes chose to run a distinctive software, then Ethereum network might once again experience a split (similar to that of Ethereum Classic).
However, Ethereum Researcher, Andrew Bradley thinks a split might not cause problems, as he sees it,
“reducing the likelihood of stale chains being picked up with little effort and sustained by exchanges or precarious particles without real development support.”
Who will get their say, Ethereum miners or traders? Is there really a way that will benefit everyone involved? Let us know below!