Ethereum Hard Forks; Three hardforks happening on the ethereum network

Ethereum Hard Forks; Three hardforks happening on the ethereum network

ethereum
January 2, 2019 by Hitesh Malviya
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A hardfork is an important technical change in any cryptocurrency or blockchain network which is generally carried out for improvement of code base or network. Hard forks are always been in limelight since the inception of Cryptocurrencies. In last few years we saw a couple of hard forks coming out from different cryptocurrencies including Bitcoin
Ethereum Hard Forks

A hardfork is an important technical change in any cryptocurrency or blockchain network which is generally carried out for improvement of code base or network.

Hard forks are always been in limelight since the inception of Cryptocurrencies. In last few years we saw a couple of hard forks coming out from different cryptocurrencies including Bitcoin and ethereum. Bitcoin cash and ethereum classic are the two most popular hard forks happened in the history book of cryptocurrency so far. Both these hardforks was the result of internal community dispute, so few rebels decided to create their own cryptocurrency by splitting out from the main chain.

From investing point of view, Hard fork is often considered as Huge catalyst for growth.

Ethereum 2.0

Ethereum is blockchain platform which is being used to create dapps and issue tokens widely. Its native coin is called Ethereum which is #2 cryptocurrency according to Coinmarketcap data. Ethereum was initially launched as a Proof of work coin, where mining is required to issue coins and validate transactions, Proof of work is the same consensus algorithm being used in Bitcoin as well. Mining has became costly because of increasing cost of electricity, also proof of work coins are slow in nature when it comes to transaction speed. For a mass adoption, transaction speed is the way to look forward which is not supported by Proof of work consensus. Hence Ethereum decided to transit into proof of stake consensus, which is fast, easy and environment friendly. Ethereum 2.0 Vision’s is largely depended on Proof of stake and sharding. According to Ethereum updated roadmap, They will transit completely into Proof of stake in 2019.

Ethereum Updated Roadmap

Proof of work vs Proof of stake

The upcoming hardfork is the preparation for this transition into proof of stake. The hardfork is named Constantinople.

Along with the Constantinople hard fork, there are three more hardforks happening on the ethereum network in this month.  

  • Classic Vision

    The Classic Vision hardfork is the Ethereum Classic hardfork. The hardfork came about after a breach of security that the original Ethereum network had. Majority of the Ethereum community wanted to erase all traces of the breach, while a very small part wanted to address the issue.

    In an attempt to erase the security breach, which brought up questions about the network’s viability, the Classic Vision hardfork took place. And many people went along with it. It is essentially a creation of a separate chain without the history of a security breach.

    The Classic Vision hardfork is expected to take place on 11th January. And for every ETH, users will get 3 ETCV. (3:1)
  • Ethereum Nowa

    Ethereum Nowa is the second most talked about hardfork on the Ethereum Network. The only change that Ethereum Nowa hardfork is implementing except for the proof-of-work to proof-of-stake protocol shift, is immutability.

    The entire idea behind the Ethereum Nowa hardfork is to keep the spirit of the blockchain intact and make sure that it is not tampered with.

    The Ethereum Nowa hardfork is scheduled to take place on the 12 January. And the ratio of coins being awarded is going to be in the ratio 1 ETH:1 ETN.  
  • Constantinople Fork

    Constantinople Fork is one of the most awaited hardforks of Ethereum. The discussion for Ethereum Nowa started back in August 2018 and the launch has been postponed multiple times since.

Constantinople Fork has proposed 5 changes or Ethereum Improvement Proposals (EIPs). And is a network-wide upgrade for the Ethereum Network. The five changes that the Ethereum Nowa is implementing in their hardfork are; efficient information processing, optimisation of code execution, more affordable data storage, promote scalability and reduction of mining reward.

Another big change that the Constantinople Fork is implementing is the change from Proof-of-work protocol to proof-of-stake.

The Constantinople Fork is set to happen on the 16 Jan. This fork will come at block 7,080,000, it will reduce the block reward from 3 eth to 2 eth. Miners had already started selling their rigs because of shrinking price of ethereum lately, It would be interesting to see how miners will react after this hard fork update. As Mining will be not longer required after full transition into Proof of stake, Miners might have already started looking for other options to keep running their mining operations.

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Recent surge in Price

Etherum is on the bull ride since after the Hardfork is announced by the ethereum foundation. According to coinmarketcap, Ethereum was trading at 84$ on 7 December 2018, Since then it has grown over 90% in value. At press time, Ethereum was trading at 146$. According to Speculation, Ethereum will likely to touch 180$ before the hard fork.

Community Reaction

Crypto community is overall bullish on ethereum price action. They are targeting a price level of 180$ before the hard fork, Charts are also looking in the favour.

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