Ethereum Price is driven by the value users and investors see in Ether as a cryptocurrency and Ethereum as a technology. In an attempt to enhance Ethereum’s usability, the development team planned a series of upgrades to enhance Ethereum’s anonymity, scalability and even the developers coding experience. Our article today will cover the developments in deployment of Ethereum Metropolis upgrade along with what it could mean for Ethereum price.
Metropolis Upgrade and Deployment Updates
Our previously published articles provide a detailed explanation of what investors need to know about the Metropolis upgrade, The Ethereum Raiden Network and the upcoming enhanced anonymity in Ethereum.
What is Metropolis?
Metropolis is a planned Ethereum upgrade that will include several planned hard forks to add both enhanced and new functionalities to Ethereum. The upgrade will be done in 2 phases (and hard forks) : Byzantium and Constantinople.
Metropolis is not the only upgrade planned for Ethereum. After the completion of Metropolis, Ethereum’s development team will start working on the Serenity release to convert the Ethereum Network from a proof of work to a proof of Stake.(PoW to PoS).
Byzantium Progress so far
Byzantium is the first phase and the first hard fork included in the Metropolis upgrade. It was originally scheduled for the end of September or first week of October. Last that we heard from the Dev team, Vitalik Buterin has postponed the Byzantium fork till around mid-October to ensure a successful adoption by Ethereum miners.
Week of the 3rd of September, the Ropsten Test Network was deployed to officially launch Byzantium’s testing phase. So far, the testing is running smoothly.
Week of the 17th of September, the first zk-snark private transaction was verified successfully on the Byzantium test Network. The Ropsten test network however was subject to malicious attacks that according to Buterin were not successful.
For the Ropsten testnet chain state including updates on the Byzantium hard fork, updates are available here.
What’s happening with the Raiden Network?
Ethereum’s Raiden Network, is Ethereum’s Off-chain scaling solution enabling fast, low cost micropayments. It is Ethereum’s equivalent of Bitcoin and Litecoin’s Lightening Network.
A short and clear update is provided in the Raiden Network FAQ:
Raiden currently consists of three independent projects: µRaiden, Raiden Network, and Raidos.
There is a working implementation of µRaiden, which will be deployed on the Ethereum main net shortly.
The Raiden Network is still in development. A developer preview will be released soon and allow Dapp developers to get a first impression of the API and the properties of the system, also enabling them to build prototypes that interact with the Raiden Ropsten-based test network. In its current state the technology is not ready for production use. Significant tooling and even changes to the core protocol still need to be developed.
Raidos is currently only in its planning phase and development has not been kicked off yet.
Why an ICO to Fund the Raiden Network?
Vitalik announced recently the plan to hold a “uniform price auction” also referred to as a “Dutch auction,” where the cost of the tokens would decline as the auction progresses. This is an attempt to keep the token price as low as possible.
The ICO’s purpose is to provide additional funding for the development of the Raiden Network. More specifically, the funds from the ICO will be used to avoid having users needing to watch payment channels when initiating a transaction. Instead, a vendor will do so for a small payment in the form of a token (RDN).
Ethereum price and the Metropolis Upgrade
Ethereum’s Metropolis, specifically the Byzantium hard fork is a big deal for Ethereum for 2 reasons. Firstly, because it is the first half of the Metropolis upgrade. Secondly, it is the first and largest upgrade since the DAO hard fork resulting in Ethereum and Ethereum Classic. A successful deployment will be a huge leap forward for Ethereum, but it also comes with risks. It is actually amazing to see how Ethereum price is still holding in the Bullish zone with an upcoming hard fork and all the pressure on the cryptocurrency market in general.
The other factor to consider in order to assess the impact of this upgrade on Ethereum price is how Ethereum or Ether differentiates itself from other cryptocurrencies. We all know how Ethereum is a favorite among many Fortune 500 companies, governments and major players. To assess that interest, a quick look at the members of the Enterprise Ethereum Alliance can give you an idea. With this enhanced anonymity (among other enhacements) Ethereum will provide users with a value-add similar to the anonymity zcash and monero is offering their users. If the upgrades are deployed successfully, Ethereum’s value and price will get a significant boost.
To keep our readers informed about the upcoming Ethereum Upgrades, our research team published the following series of articles: