Ethereum Upgrade Will Reduce Miner Rewards By 33%
This New Ethereum Upgrade Will Set ETH to CRUSH Bitcoin
Ethereum is testing a network upgrade that includes code optimizations, improved scaling, pricing, data handling, and reduced miner rewards to 2 ETH.
On August 31, the development of the new Constantinople system-wide update package was completed, which is actually a hard fork. It consists of five Ethereum Improvement Proposals (EIP). Most of them are aimed at improving the quality of the platform and helping developers of smart contracts and applications, but for ordinary users they will be almost imperceptible.
However, the most controversial EIP 1234 will have a huge impact on the economic component of the ecosystem. This proposal provides for a decrease in the reward for miners for closing a block from 3 to 2 ETH. In addition to reducing the profitability of mining by 33%, it is planned to gradually increase the complexity of mining, which is planned to be extended for a year..
These steps are taken in order to prepare the platform for the transition to a consensus algorithm (PoS). The miners' community reacted extremely negatively to this decision of the developers, but investors and experts believe that the update will increase the rate of ether and at the same time slow down the process of its depreciation due to unlimited emission.
The preliminary release date is called October 8, but the testing and revision process may be delayed. Therefore, the hard fork can be postponed to November or even further. Those who do not support the update will continue to work in the old blockchain of the project..
Bitcoin optimizers also recently introduced a unique submarine swaps technology that allows direct transactions of various cryptocurrencies through the Lightning Network.
text: Ivan Malichenko, photo: Branko Stancevic / Unsplash