What Is The Ethereum Constantinople Hard Fork?
The new Ethereum hard fork called Constantinople is currently under development and, for those who are not familiar with the term, a hard fork is a code that makes updates to the protocol of the cryptocurrency.
Ethereum is the technology allowing different markets to be created, funds to be transferred or smart contracts to be created. The Ether and the ‘gas’ is the actual ‘fuel’ that helps these actions take place. All of these aspects are usable here today because of Vitalik Buterin, who is the co-founder of the Ethereum platform, a Russian Canadian programmer that is also the co-founder of the Bitcoin Magazine.
Alright, but what the Constantinople hard fork is?
Ethereum as any other great piece of technology needs an upgrade from time to time. This is where the forks come into play. The hard forks split the cryptocurrency code into 2 as opposed to the soft forks that just make an upgrade by creating a new cryptocurrency.
Steps towards the hard forking:
- Generating a two-chain split
- The chain that is the longest becomes the truth and so, the shortest one is abandoned from the network
- New features are being added
- The core rule will be changed
The Constantinople hard fork is actually the 2nd part of the Ethereum Metropolis update; the first phase being Byzantium. This second part has been programmed to hi the Testnet by the end of October 2018, having as purpose a smooth transition from the POW consensus algorithm to POS. This is actually good news for the developers at Ethereum since it will bring more scalability to the project itself.
How will the Constantinople hard fork affecting the market?
Constantinople is actually an update that will help the transition from a POW algorithm to POS and it will influence directly those who use the Ethereum platform by making it more secure and private. This sounds all good, but how does this upgrade actually affects the market?
The Constantinople hard fork is seen by most users of the Ethereum platform as a way of increasing the price of the Ether. This is going to reduce the block reward to 2 ETH. The fact that the Byzantium has brought with itself a growth in the price of the ETH will actually give the users little enthusiasm when it comes to purchasing after the Constantinople upgrade will take place. The market might become bear and will not give way to users wanting to purchase using cryptocurrency.
Will there be changes in terms of crypto value?
The fact is that even with this change in the backdrop of the cryptocurrency, the individual value might actually increase. How is that possible? This is because in the end, the forks actually offer some new solutions to the issues that were related to the currencies in the past (making the Ethereum network better because of the upgrade done to the security protocols and privacy and provide a more secure Mainnet). Such aspects make the Constantinople fork more tempting for both the old and new investors.