Ethereum (ETH), one of the most popular cryptocurrencies responsible for innovations such as the DAppand Smart Contract, is about to experience a major network upgrade on January 16th known as “Constantinople” which seeks to make ETH a much cheaper and more efficient option for running decentralized applications along with combating inflation in the cryptocurrency.
Though it might seem daunting at first the network upgrade can be easily explained through the five Ethereum Improvement Proposals (EIPs) that comprise it EIPs 145, 1052, 1014, 1283, and 1234 respectively.
Though it might seem daunting at first the network upgrade can be easily explained through the five Ethereum Improvement Proposals (EIPs) that comprise it EIPs 145, 1052, 1014, 1283, and 1234 respectively.
The two EIPs that are designed to reduce GAS prices are EIP 145 and 1283. EIP 145 is introducing Bitwise Shifting instructions to the blockchain reducing the cost of running shifts in any operations by 10,000% which makes generating hashes, running code systems with no floating point support, and polynomial arithmetic much much simpler. EIP 1283 makes storage on the blockchain much cheaper by reducing the GAS price for the SSTORE operation.
EIP 1052 compliments the previous two Proposals by reducing the verification time for smart contracts by only requiring the hash to be pulled for verification instead of the whole code. Along with this EIP 1014 is seeking to make ETH more accessible by allowing off-chain transactions through state channels adding more flexibility to the blockchain while further reducing transaction fees.
EIP 1234 is by far the most controversial out of the Proposals since it seeks to implement “The Thirdening” which reduces the block rewards miners receive from 3 ETH/block to 2 ETH/block while delaying the “difficulty bomb” by another 12 months as a means to increase scarcity and decrease inflation which should ultimately lead to a much needed price increase to pass XRP in order to take the number two spot for market cap and really a possible bull run in order to recover losses taken in 2018.
EIP 1052 compliments the previous two Proposals by reducing the verification time for smart contracts by only requiring the hash to be pulled for verification instead of the whole code. Along with this EIP 1014 is seeking to make ETH more accessible by allowing off-chain transactions through state channels adding more flexibility to the blockchain while further reducing transaction fees.
EIP 1234 is by far the most controversial out of the Proposals since it seeks to implement “The Thirdening” which reduces the block rewards miners receive from 3 ETH/block to 2 ETH/block while delaying the “difficulty bomb” by another 12 months as a means to increase scarcity and decrease inflation which should ultimately lead to a much needed price increase to pass XRP in order to take the number two spot for market cap and really a possible bull run in order to recover losses taken in 2018.
This all adds up to the bigger picture and the true hope for what the update will ensue since the cryptocurrency market has lost well over 80% of its market cap over the past year destroying morale in the community while also scaring off many investors. The change could lead to a recovery over the course of 2019 to help rebuild the image of cryptocurrencies being a safe investment along with invoking the image of a blockchain powered future.
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