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How Open Finance and Scalability Can Thrust Ethereum into Orbit

Ethereum’s New Network Upgrade Constantinople Will Soon Hit Testnet

Reading Time: 2 minutes by on September 18, 2018 Altcoins, Ethereum, News, Tech

Ethereum’s Constantinople hard fork upgrade, which aims to make processing information more efficient by reducing mining rewards, is scheduled to be implemented by the end of October 9, 2018, Ethereum community member Eric Connor tweeted on September 14, 2018. 

The New Upgrade

Finalized on August 31, Constantinople, the Ethereum network’s upcoming hard fork upgrade, will fork the Ropsten testnet sometime in the second week of October 2018.

The backward-incompatible update will involve the implementation of five distinct ethereum improvement proposals (EIPs) and will make permanent modifications to the ethereum’s existing codebase.

Eric Conner, one of the members of the ethereum community, announced the news on Twitter on September 14, saying that the Constantinople hard fork will hit the Ropsten testnet on October 9.

Conner added that the upgrade would be implemented onto the main chain sometime after Devcon 4, the annual Ethereum Foundation conference which takes place in Prague from October 30 to November 2.

However, the fork is not set for a particular date or hour, but for a to-be-determined block number. Even though developers won’t identify the exact block number for another two weeks, there’s already a proposal up on GitHub suggesting the fork take place at block number 4,230,000.

Members of the ethereum community claim that the hard fork will create a more cost-efficient mainnet that will be faster and easier to use.

Even though ethereum is currently generating around 7.3 million ether every year, Conner believes that the addition of a new PoS and Constantinople will significantly reduce that number.

Constantinople is expected to make adjustments to Ethereum’s economic policy, which partly focuses on delaying the difficulty bomb.

According to Ethereum’s Github repository, EIP1234 will delay the difficulty bomb for approximately 12 months to reduce the block rewards with Constantinople, the second part of the Metropolis fork.

What Does This Mean for Ethereum?

While the overall response to postponing the difficulty bomb has been well-received by crypto traders, Ethereum’s token miners have expressed their frustration regarding the cutbacks to the mining rewards.

Finder reported that the update would require miners to go against their short-term self-interest and accept a significant pay cut, which could lead to many of the miners switching to the more profitable tokens such as the Ethereum Classic.

Vladislav Dramaliev, head of digital marketing at Aeternity, told Finder that hard forks are an inconvenient way of pushing through updates, which often results in service disruption.

“It will be a prime example of why a functioning, public blockchain system, managing billions in value, is difficult to upgrade. Implementing fundamental protocol changes always comes with a risk of disruption and community fragmentation,” he noted.

Dramaliev also added that a “one token, one vote” system or everyday decisions based on information markets would be a better choice than a hard fork, as it would be more transparent from the community’s perspective.

Gabriele Giancola, CEO, and co-founder of Qiibee said that the reduced block rewards would benefit speculators hoping for a rise in value. John Iadeluca, founder and managing director of Banz Capital Hedge Fund, agreed and said that contentious hard forks are usually exciting times for markets, as they mean great volatility.

However, as volatility is contingent on the contentiousness of the fork, broad acceptance of Constantinople could mean a more stable market.

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