In new developments, Ethereum co-founder and blockchain icon, Vitalik Buterin, praises Ethereum core developers for the new updates that are approved for the next hard fork of Ethereum, Istanbul. In this article we are going to review news on Ethereum, look at the current price action, and check out a new feature for the Tribe.
Nothing should be considered investment or financial advice. Enjoy the ride.
Updates Approved By Ethereum Core Developers
Based on a article by The South African, the Ethereum core developers have finally finalized six main code changes for the upcoming Istanbul hard fork that was supposed to take place earlier this year. If we recall, the update had to be all but canceled due to bugs and complications with the network that were divulged to the community days before the update was to take place. This dramatic shift pushed the market to even more turmoil at the start of the year. Now, the updates are set to take place throughout early 2020.
In particular, Istanbul will be rolled out in two main phases. The first phase is set to be launched in October 2019 that will implement the current updates and prepare the main net for the upcoming hard fork. These updates were necessary to prepare the chain for the shift.
The second phase is still tentatively planned to be launched in the first quarter of 2020. This update should serve to completely hard fork the Ethereum network and move all miners over to the new main net. Remember, there is a protocol on Ethereum, Ice age, that will slowly “freeze” the previous chain and prevent any unwanted stray miners to continue mining on the old chain. This protocol essentially makes the mining difficulty grow exponentially more difficult over the period of a year where at that point, there is almost 0 profitability for miners. This protocol was introduced to keep hard forks from splitting the network and fully incentivize the network to follow suit.
The upcoming updates are very important for the success of Ethereum as new blockchains are constantly growing and catching up to the titan. Specifically, the first phase set in October will serve to increase the interoperability with privacy coins which will serve to increase the utility and liquidity of ETH, strengthen the network against hacks, and setup the changes to the gas requirements.
Besides the progress, the larger picture is the original implementation of these updates were targeted for August 14. Upon the lack of development the updates were pushed back until September 4th, and now, the updates are projected to go live in October. The reason for the push backs are the extreme sensitivity the blockchain has to updates. For the chain to update, every miner needs to switch to the new code on the same block and all come to an agreement on that block. If not, the system faces a chance of creating two chains and problems with the community.
To keep everyone at peace and prevent bugs or problems with the code, the team lead and senior developer at Ethereum, Peter Szilágyi, proposed more delays for the updates to the Ethereum client. Traditionally, there are months of testing before these updates are pushed out, but even limiting the time to several weeks would be brave as he put it. Regardless of delays, the community seems to support this sentiment and agreed on pushing back the first phase to October.
Ethereum Price Movements
If you are up-to-date with the market, you will know that the Ethereum (ETH) price has been dipping below the support level of $200 for most of the year.
From the chart above we can see Ethereum has been struggling to maintain is price above $200 which ironically, makes a great buying opportunity in the market. Depending on your opinion of Ethereum and its future in the crypto market, this could either indicate a shift in the market back to a bearish sentiment or a strong buy signal before an end of year rally. One thing to consider is the reduction in supply that will happen when the Ethereum main net starts to shift to proof of stake from the traditional proof of work consensus algorithm. Once this happens there will be a diminishing supply of Ethereum for sale on the OTC market and could lead to a substantial price inflation for those institutions looking to purchase large sums of Ethereum forced to shift to exchanges.
On a small side note, I will be starting a Youtube channel to review articles, go over other market news, and just get to know my audience a little better. I hope you take the time to check it out and support the Tribe on Youtube as well! Thanks for reading.