The Rubric of Constantinople Ethereum (Updated)
Ethereum protocol has undergone two forks this month. The third one, Constantinople Ethereum Hard Fork, considered the most crucial, is conceived to make the network run faster and cheaper. Set to happen at block #7080000 on 16 January 2019, what will it mean for ETH miners and hodlers?
Through the fork, Ethereum core developers are gearing up to focus on network cost effectiveness, performance, and an eventual shift from proof-of-work consensus to proof-of-stake.
Ethereum Improvement Proposals (EIP)
There are five key upgrades, or EIPs, for Constantinople which are designed to lower transaction gas fees, decrease mining rewards, delay the ‘Difficulty Bomb’, and provide optimum smart contract execution.
1. EIP 145
The EIP 145 advances bitwise shifting instructions in within Ethereum Virtual Machine (EVM) to reduce the amount of gas it uses due to the ‘native functionality’ injected into the protocol. It is written by Alex Beregszaszi and Pawel Bylica.
2. EIP 1014
The EIP 1014 or Skinny Create2 permits interactions for off-chain addresses. It is written by Vitalik Buterin.
3. EIP 1052
The EXTCODEHASH opcode carries within it the latest improvements on smart contract verification. The effect will make on-chain functions easier and move gas effectively. This opcode is by Nick Johnson and Pawel Bylica.
4. EIP 1283
This EIP is for SSTORE net gas metering which tolerates new usages for contract storage to reduce gas consumption. The code is written by Wei Tang
5. EIP 1234
Said to be the most critical of the EIPs, EIP 1234 postpones the difficulty bomb by extending lengthening the ‘ice age’ to 12 months more. This will gain more time awaiting PoS implementation with Casper. It is written by Afri Schoeden.
Exchanges and Wallets Supporting Constantinople Ethereum
The first of the January fork, Classic Vision Hard Fork (ETCV), holders will gain three ETCV for every piece of ETH they have. The second fork, Ethereum Nowa (ETN), holders will have one ETN for each ETH they hold.
Holders who keep their ETH in a private wallet with control over their own private key will receive the new coins. Those whose ETH are with exchanges will receive the coins if the exchange supports the forks.
Binance, Coinbase, BitForex, Huobi Global, Kucoin, Bibox, OKEx, HitBTC, and IDEX confirmed their support for the Ethereum hard fork.
Effects on Miners and Inflation
EIP 1234 will have an effect on miners as it will affect the supply of new ETH by decreasing mining rewards from 3 ETH a block to 2 ETH, reducing a third of miner revenues. Plus, a move to proof-of-stake will not need miners to solve a mathematical puzzle in exchange for incentives. With PoS, a miner, depending on his ETH stash, will be selected to verify transactions.
EIP 1234 will reduce the overall supply of new ETH from 20,300 ETH to 13,400 ETH a day. The sum of new coins will halve from 7.4 million to 4.9 million annually. This will cause the inflation rate to fall to 4.8%.
Constantinople and Serenity
Last November 2018, Buterin’s Devcon4 keynote presentation highlighted Serenity or Ethereum 2.0 as a ‘more decentralized world computer’.
Due to security issues, the hardfork is being delayed. New timing will be discussed on Ethereum dev this Friday.
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