Indication Ethereum’s Constantinople Fork Could Reflect on Ether’s Price Movement
The rejuvenated news of an upcoming hard fork reflected sharply on the demand for Ethereum’s token on Jan. 2. Ether gained a 12% rise over a 24-hour period even though the Constantinople is still scheduled for Jan. 16. While the momentum was not sustained as the $155 high reached – first time since Dec. 24 – has dropped to $148 as at the time of this writing, it points to what could become of ether’s price movement in coming days.
With the fork, the Vitalik Buterin-led open-source Ethereum movement is planning to field-test a long-promised overhaul of the cryptocurrency’s code. It could see transactions on the network being completed using just 1% of the energy consumed today by the end of 2019. It would also reduce block rewards thus making mining on Ethereum more attractive.
The hard fork is expected to go well since it is not a contentious one but supported by all major clients. Miners on the network will be expected to switch to the new blockchain that the hard fork will create (as a second Ethereum blockchain). It will include EIP implementations.
All the smart contracts that are currently on the Ethereum blockchain will then be replicated on the new blockchain. The old blockchain will still hold some value while miners switch to mining the new chain but there will be no more planned updates on it. This will eventually drop the value on the original chain to the ground to shift attention to the new one.
According to the IEEE Spectrum, Zaki Manian, who advises the cryptocurrency upstart Cosmos, described this ‘attempted rebirth’ as one of what will be 2019’s “most fascinating technologies to watch.” He explained that multiple coders and organizations would have to collaborate in the open, converge on specifications, invent all of the technology to implement them, and make them work together seamlessly to complete the Ethereum’s development process. “It is by far the most technically ambitious open community project that has ever been attempted,” says Manian to the online publication for the world’s largest professional organization devoted to engineering and the applied sciences.
Ethereum’s plan is to replace PoW with proof of stake (PoS) which will allow the system to randomly pick a processor to process transactions instead of millions of processors processing the same transactions simultaneously. Updates on the Constantinople fork can be tracked here. Constantinople will activate on Wednesday 2019-01-16 09:36:44 UTC.