Ethereum’s Istanbul Hard-Fork Set To Improve Scalability, Security, And Reduce Fees In 7 Days
Ethereum had quite a mixed year in terms of progress as the price of the ETH token failed to boom after the prolonged crypto winter, and even though it touched a yearly high of $350, it lost all it's gains in the following months. ETH was trading at $153.40 with more than a 60% decline from its yearly high.
While its price movement on the trade market wasn't lustrous, it did see quite a success in terms of adoption and market value of its decentralized finance ecosystem. However, despite the impressive performance of its DeFi ecosystem, the altcoin has failed to hold its ground on the price charts.
Ethereum network is currently in the middle of a major transition of mining protocol from Proof-of-work (PoW) to Proof-of-stake (PoS) often dubbed as Ethereum 2.0 next year. As for now, the Istanbul upgrade is due for next week which would introduce some major changes into the network in respect of security, interoperability and network costs.
The Istanbul had fork would introduce 6 Ethereum Improvement Proposals (EIPs) on the network, out of which 4 are solely dedicated to bringing the gas cost on the platform lower. The other two EIPs are dedicated to Interoperability with Zcash and improvement of security measures on the network.
The Istanbul hard-fork would have no impact on any ETH held by users on exchanges or in their personal wallets. Once the Serenity update comes in the next year and the network migrates to PoS mining consensus, only then users might have to migrate their tokens to the new network.
The list of impending upgrades could help the market value of ETH
ETH token's market value is at a yearly low and currently moving in the same price range as it did at the start of the year. The success of De-Fi hasn't really reflected on its price and the Ethereum community are hoping that the move to Ethereum 2.0 would also help it improve its market value.
Ethereum 2.0 is believed to resolve one of the biggest issues of scalability crippling the current network. The crypto market is heavily governed by the Bitcoin price movement and most of the altcoin loom under its shadow. But, the Ethereum community believes that Bitcoin and Ethereum serve different purposes where BTC is increasingly used as a store of value while ETH is more of the decentralized ecosystem providing all kinds of decentralized financial services promising to be better than the traditional ones.
Ethereum community has high hopes from next year given the impending move to Ethereum 2.0 which many believe could really help the altcoin gain some lost ground on the price charts.