Ethereum Byzantium fork is happening at Block 4,370,000. That means it will probably happen in the next 17 hours or less. Of course, Ethereum holders and Enthusiats are watching for what will happen before and after this important event. We are watching as well because with the Byzatium fork, many important changes will be introduced to Ether, Ethereum as a technology and Ethereum Economics.
Some of the enhancements include but not limited to the following:
- Faster, safer transaction with enhanced anonymity which should drive increased use therefore bullish for Ethereum price. This will be achieved through Dapps communication protocol Whisper.
- The integration of Zcash’s cryptographic engine (zk-SNARKs) into Ethereum which should enhance Ethereum’s Anonymity
- Decentralized exchange (order execution) between the Zcash and Ethereum’s blockchains.
- Postponing the planned increase in Ethereum mining difficulty
- Reducing Ethereum’s issuance to miners by reducing block rewards from 5 ETH to 3 ETH.
Ultimately, the objective is to move Ethereum from a proof of work towards a proof of stake which will drastically improve Ethereum’s scalability. For that to happen, the upgrades will be structured into two phases:
- The Metropolis release, which includes The Byzantium and the Constantinople forks
- The Serenity release that will finalize the upgrade and move Ethereum from a Proof of work to a proof of stake.
If we forget about the sentiment in the Cryptocurrency market that can trigger an important Rally or cause a flash crash in a matter of hours, the fact that this reduction in block rewards for miners will decrease Ethers in circulation seems bullish for Ethereum price. Provided the demand remain stable, this reduction should result in an automatic price increase in Ethereum. If the Fork is successful, we should see Ethereum’s intrinsic value strengthen leading to an even higher demand.
For a successful fork, Ethereum users will need to upgrade to the new version on the software and the deployment will need to run smoothly. Security attacks are always a threat but these are the main things that could negatively impact Ethereum price in the process. It is unlikely as the upgrade was heavily tested and debugged but never say never.
You can read more about the upcoming Ethereum enhacements in the articles below:
- Enhanced Anonymity for Ethereum Coming, Bullish for Ethereum Price
- Ethereum Price and the Upcoming Metropolis Upgrade
- Raiden Network, Ethereum’s Powerful Version of the Lightning Network