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The incumbent fork of the ethereum network – the famous blockchain for encrypted businesses – is scheduled for the end of Wednesday in the eastern hour and, unlike the recent cryptocurrency forks, the change should not create friction.
The latest version of the software, known as Constantinople, will be implemented after extracting the block number 7.080.000: A block is a set of data that is validated and confirmed in the process known as encryption.
The upgrade aims to reduce mining rewards from three to two, speed up processing time, improve the way the network monetizes data storage and tackle cryptographic scalability: the ability to process transactions efficiently and quickly. Scalability has been widely seen as an obstacle to the acceptance of digital resources.
To read: A Northwestern team thinks they've solved one of the biggest bitcoin problems
The upgrade is considered a difficult fork because the blockchain will split into two, but the upgrade will be classified as noncontent, which means that all transaction validators will update their software.
The change is widely touted as positive both for the community and for the price of the cryptocurrency that runs on the blockchain ethereum. "In the short term, shortly before and during the fork we expect a recovery in price volatility, although we expect to see things in balance after the consensus on the chain," wrote Piers Courtney, an analyst at GlobalBlock, a brokerage firm of criptovalute.
"It has been widely reported that this hard fork should alleviate some of the tensions that have been built regarding the ETH and is likely to be positive for the assessment of Ether in the foreseeable future."
Tuesday, Ether
ETHUSD, + 2.44%
it was trading at $ 130, over 60% of its low December half, but still falling more than 90% from its all-time high above $ 1,400.
Thursday's ethereum fork will be the eighth of all time, according to Etherchain.org.
To read: Are ICOs short of cash behind Ether's underperformance?
Read: here you can read about Constantinople from the Ethereum blog
This fork contrasts with a crack in ethereum in 2016 which occurred following the Ethereum Classic. That division came after 3.6 million Ether (about $ 50 million at the time) were stolen from the venture capital in digital currency, the DAO. That theft initially led to a confrontational debate before the community decided to implement a split to deal with stolen assets.
Some members of the ethereum community refused to upgrade, which created Ethereum Classic. These members – mainly crypto-hard-core evangelists – argued that the fork went against one of the founding principles distributed, the immutability.
Perhaps, one of the most important forks to date, however, has led to the creation of Bitcoin Cash
BCHUSD, + 1.60%
in 2017, which divided the community and led to the underlying cryptocurrency that made its value.
However, Wednesday's ethereum fork is becoming markedly smoother in comparison. "At this time on Thursday we should have a new ethereum, which is faster, less expensive and has 33% less inflation," wrote Mati Greenspan, senior eToro market analyst.
After 12 volatile months, Ether slipped to third place on the list of the largest digital currencies behind XRP,
XRPUSD, + 1.61%
which works with the Ripple and bitcoin protocol,
BTCUSD, + 0.69%
the best-known cryptocurrency, which accounts for more than half the value of all cryptocurrencies, based on CoinMarketCap data.
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