What to know about Ethereum's Constantinople hard fork

04 Sep, 2018
by Arthur Sillers
News
What to know about Ethereum's Constantinople hard fork

The Ethereum dev team streamed a meeting live recently wherein they detailed an upcoming hard fork to the Ethereum blockchain. What do you, as a crypto trader, need to know?


The hard fork, which is termed ‘Constantinople,’ is a step towards moving the Ethereum model from a proof-of-work to a proof-of-stake paradigm. Ethereum believes that moving their blockchain to proof-of-stake security is central to developing a long lasting viable blockchain which can handle a global financial infrastructure, but in the meantime the important things to know if you are an investor are as follows:

Ethereum will still be mineable for the forseeable future.

Proof-of-stake models move away from mineable coins, but the dev team decided to delay what they call the ‘difficulty bomb’  for another twelve months, during which time ETH will be mineable, including with ASIC hardware.

Block rewards will be reduced.

While mining will continue, each rewarded block will be reduced by one third. This is part of the process of moving from a proof-of-work model to one which does not utilize mining to keep the cryptographic integrity of the ledger.

ETH price is being pushed, but results may be delayed.

Commentators view the move to reduce block rewards as a move to increase ETH’s market price, which is depressed partly by the need for miners to sell in order to cover operational costs. While the decrease in block reward should drive up price, this increase will happen on a long time scale, spanning a few years rather than the weekly market cycles crypto traders are used to.

These are the main things to anticipate coming in to the Constantinople fork once it goes into effect. There has yet to be a date announced, but there is another shareholder and developer meeting in about two weeks, during which more information should be made public.

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Read more about:Ethereum (ETH)

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