Ethereum is scheduled to undergo a planned system upgrade at block 7,080,000, putting the event on January 16th. ‘Constantinople’, as the upgrade is called, intends to implement 5 serious improvements, begging the question – will this trigger a surge in ETH Price?
5 Days Until ‘Constantinople’
Back on December 6th, 2018, Ethereum core developers voted in favor of implementing the Constantinople system upgrade on the main network. It is scheduled for January 16th, 2019 – in five days.
One of the most widely discussed changes that the upgrade will introduce is the so-called “thirdening”. This is the event of reducing miners’ rewards from 3 ETH/block to 2 ETH/block – hence the name.
In a detailed thread, Twitter account Sam Cassat (@samcassat) has shared his views on how this might affect the network and ETH price.
When an asset’s supply goes down (fewer miners selling newly-mined $ETH), assuming demand is the same (or higher), prices trend up. This is obvious when looking at $BTC price mapped against the #halvening, a similar event in $BTC where block reward halves, next one is May 2020. – He writes.
In addition, Casset explains that Constantinople is a move towards Ethereum’s long term plan to substantially reduce inflation by decreasing issuance. This will supposedly peak once the network shifts from Proof of Work to Proof of Stake consensus algorithm.
Other Serious Improvements
Constantinople is set to bring other improvements for Ethereum’s network as well. These are the Ethereum Improvement Proposals (EIP) that the upgrade is supposed to integrate.
EIP 145: Efficiency and Speed
This will add Bitwise Shifting instructions to the EVM (Ethereum Virtual Machine). The idea is to improve the execution of shifts in smart contracts handled on the network and make them subsequentially cheaper.
EIP 1052: Speed and Energy
This EIP will allow smart contracts to verify each other by simply pulling each other’s hash instead of the entire code.
EIP 1014: Scalability
This proposal is developed by Ethereum’s co-founder, Vitalik Buterin, and is intended to improve scaling on Ethereum by enabling off-chain state channels.
EIP 1283: Cost of Transactions
The full name of this EIP is ‘Net Gas Metering for SSTORE Without Dirty Maps”. Its idea is to reduce the gas cost for SSTORE operation. This will supposedly enable multiple updates to take place within a single transaction at a reduced cost.
What do you think of Ethereum’s upcoming system upgrade? Will it affect ETH price? Do share your thoughts in the comments below!