The news that the new update of the Ethereum (ETH) system was going to testnet at the beginning of October caused a slight recovery for the price of Ether at the end of last week.
Starting at $ 170 at the start of Wednesday, ETH reached above $ 200 by early Friday, peaking at $ 225 by Saturday afternoon. Since then Ether is trampling on water, and at the time of writing was trading at just under $ 220.
Known as "Constantinople", the new Ethereum update will begin a series of fundamental transitions for the network. Comprised of five updates, this will help move the network away from a work proof consent model, lay the foundation for the ETH scalability solution and support and support its smart contract infrastructure.
What is the updating of the Ethereum of Constantinople?
System updates on Ethereum are worth the hard fork. When the Blockchain branches off, the ETH community agrees to move on to the fork which includes all new updates; without any user sending transactions on it, the old man simply becomes dormant.
Although they should be harmonious, system updates have been the scene of many infighting. The Ethereum community was split following the DAO hack in the summer of 2016, when hackers took advantage of a loophole and emptied $ 50 million of ETH from project funds. Most users have agreed on a system update that did not comply with the hard fork; a minority is not in agreement and has remained on the original fork as Ethereum Classic (ETC).
Constantinople is part of a larger update called "Metropolis", first announced as part of the Ethereum roadmap in 2015. It is designed to improve overall security, scalability and functionality by addressing key technical points in the network code. The former, known as "Byzantium", was launched in mid-October last year
. There are five proposals for improvement of Ethereum (EIP) included in the updates of Constantinople; EIP 145, 1052 and 1283 help to improve the efficiency of the network when it comes to developing and controlling smart contracts. 145 introduces a new technique, called & # 39; Bitwise Shifting & # 39 ;, which reduces the number of operations required for the Ethereum Virtual Machine (EVM) to process smart contracts; 1052 introduces a new code compressed with essential data that must be checked; 1283 reduces the amount of gas that developers have to pay for smart contracts.
The other two updates help lay the groundwork for the long-term transition of networks to a scalable and fail-safe protocol. Vitalik Buterin's EIP 1014 includes a new state-channel-based scaling solution that helps minimize the number of actions required to process and confirm the network. EIP 1234 lowers the block premium for miners from 3 ETHs, up to 2 ETHs.
The upgrade will increase the price of Ether.
Although the developers of Ethereum have stated that the new update of Constantinople will not bring obvious changes to the average user, substantial improvements in the network will be a bullish signal for investors.
Ether's price has been in a downward spiral since the beginning of the summer. ETH dropped from a high of $ 800 at the beginning of May to an annual low of $ 172 last week: a decline of 80% over a four month period.
This is partly due to the continuing difficulties with ICO scalability and drainage. Almost 60 projects have sold Ether's holdings in a month starting in mid-July; statistics indicate that the amount sold was worth up to $ 400 million at contemporary prices.
Constantinople could help reverse the downward trend. Improving short-term functionality will keep users on the network, rather than switching to competing platforms. Laying the groundwork for major upgrades, the Caspar protocol and the scalability infrastructure will show the community that Ethereum is improving and addressing the current sore points
Morale is low in the field of Ethereum. That the price of Ether increased when he saw the news that Constantinople was going to testnet at the beginning of the next month, the good news was long overdue
Located on the Bosphorus Strait, Constantinople (now known as Istanbul) was straddling two different worlds; it was considered by the Ancients as the gateway to Europe in Asia. The updating of the Ethereum system contains the same symbology: its implementation will allow the Ether community to enter a scalable and scalable world.
The author is invested in ETH, mentioned in this article.