Ethereum hard fork Constantinople|cryptoreviewapp
History of Ethereum Hard Forking
Before we understand the proposed Ethereum hard fork Constantinople below is the brief history of ethereum hard forking:
- Ice Age (dated: 4 August 2015 – starting from block 200000)
- Homestead (dated: 31 July 2015 – starting from block 1150000)
- DAO (dated: 20 Jul 2016 – starting from block 1920000)
- Tangerine Whistle (dated: Oct 18 2016 – starting from block 2463000)
- Spurious Dragon (dated: Nov 18 2016- starting from block 2675000)
- Byzantium (dated: Oct 12 2017 – starting from block 4370000)
- Constantinople (Proposed date: Feb 27 2019 – starting from block 7280000)
Ethereum hard fork Constantinople
As per the pre-planned schedule the next ethereum hard fork Constantinople that was scheduled earlier for 01/16/2019 (block- 7080000) is now fixed on 27th of February 2019 (block-7280000). This forking will make an improvement over the Ethereum Improvement Proposal (EIP) 1283.
Proposed hard fork will be executed in two parts:
- In first part will contain all the 5 EIPs
- In second part there is a proposal to remove the EIP 1283
So, ultimately this is what the next Ethereum Constantinople Hard Fork will do.
Below is the price trend to understand its impact on the price of ethereum:
Price of ethereum started declining from the started week of January till the mid of Janaury, later on it was trading below $105 till the first week of February 2019. The price trend started changing as the next fork date is nearing. Today it was around $146. Investors has shown their trust into it. They are confident that the proposed improvements will bring some positive development into ethereum network.
If we see the news trend in the crypto market then ripple is promoted everywhere, still there is no solid adoption for it, don’t know when the banks will adopt it in future. Ethereum is now at #2 in terms of market cap after Bitcoin by replacing XRP again.
Even if the current price improvement is due to proposed forking it is good news for the ethereum holders.
Why Ethereum Hard Forking was needed?
If we look at the price history of ethereum then it has gone down 90% since the all time high in 2018. It has also missed the opportunity to prove its worth those who thought that it can replace or at least give some competition to Bitcoin. There is huge price gap between both the currencies.
In the past ethereum network has faced many challenges related to mining as the blocks became very slow. Ethereum Classic (ETC) was the result of the hard fork in the past. In order to make it smooth and bring some changes into its blockchain network next fork is very crucial.
Understanding Ethereum Constantinople Hard Fork
The proposed hard fork is one of the most awaited fork in ethereum network. It is expected that the current issues related to slow speed and high cost will be resolved.
Below are the 5 improvement proposals:
- EIP 145: This is an improvement termed as bitwise shifting. It will improve data processing over the ethereum blockchain based network. Primarily it will make the smart contracts less expensive as it will use lesser gas. (10 times)
- EIP 1052: This improvement is related to code optimization and execution over the blockchain network. It will make contract verification simple by unique hash adoption.
- EIP 1283: This is related with contract storage as the pricing will be simpler.
- EIP 1014: This improvement is related with the improvement of the network performance.
- EIP 1234: This EIP is related with block mining rewards as after the propsed forking it will be reduced by 33% of the current. It is really bad for the miners.
Impact on Ethereum Price
As the Constantinople Hard Fork does not aim at the creation of new coin, it can improve the price in long term as there will be 33% decline in the inflation. Winning trust among the investors is far more important for the long run and growth of ethreum.
What is Hard Fork
In blockchain technology hard fork happens when there is a split in the existing blockchain network. The new network branch inherits all the previous transactions and there is new transaction history is maintained for both the networks separately. In this case the nodes of previous network are not accepted by the newer version. If older version wants to go with new then it has to be upgraded to adapt the new changes.
What is Soft Fork
As against the Hard Fork in soft fork the changes are made in software protocol in such a way that it remains backward compatible. The newer version remains compatible with older version.
Source Credit: coinswitch.co
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