What Byzantium Upgrade Tells Us About Ethereum’s Future
Will it reach $400?
For the past few weeks, the Blockchain community is abuzz with the news of ethereum Metropolis upgrade.
The Meteropolis update is going to be a two step procedure, and first of which, byzantium will happen on 17th October at around block number 4,370,000.
There are a lot of major changes happening in this upgrade which include Introduction of Anonymous transactions(With the help of Z-Cash’s z-snarks protocol), a short-term decrease in miner’s fee and many more.
Perhaps the most important one is Account Abstraction,as it will ensure ethereum’s accessibility to everyone. Many people in the community think that this feature will be a big push towards global adoption of Ethereum. It makes a complex technology accessible to the masses by removing the complexities and by making it user friendly.
Well, there are a lot of speculations going on about the price of Ethereum. Especially, after the last time Ethereum did a major upgrade i.e. from Frontier to Homestead, the price shot up more than 100% from $12 to $30.
Along with all this, the important thing to note about this upgrade is that after its completion, ethereum’s development team will start the work to convert the ethereum network from a proof of work to a proof of stake*(modified).(PoW to PoS) which will help decrease electricity consumption in its mining by a big factor. Currently, it requires $50,000 worth of electricity per hour to mine ethereum which is an insane amount if we wish to make ethereum a part of our daily lives.
There were also speculations that this hard fork will lead to creation of two currencies namely, ethereum PoW and ethereum PoS, but as of now, it has been avoided due to support of ethereum community. A new currency is created in scenarios where opposing parties are unable to reach a consensus as happened in case of Segwit upgrade on Bitcoin frontier.
But the billion dollar question is, how are these changes going to impact ethereum’s price?
As it turns out, the market is very bullish on this ethereum upgrade indicating the prices will only go up once the upgrade is completed.
But more than anything, this tells us about the strength of the ethereum community. The reason why Bitcoin split up into Bitcoin and Bitcoin Cash leading to a different chain was because the changes proposed were so controversial that a consensus between the opposing parties couldn’t be reached.
This part of the upgrade may seem a little less relevant but over a period of time, this is going to be a major factor in determining whether Blockchain will actually disrupt the world systems from their fundamentals.
One of the major issues that people state for the blockchain not succeeding in future is that it doesn’t have anyone who can actually bring it home. Well, ethereum team working in Zug under the leadership of Vitalik may just be that.
On an investment front, I will advice you to buy and hold for as long as possible because ethereum isn’t going anywhere for the next few years and possibly more unless a big unfortunate debacle happens.
What will happen to your ethereum?
You need not worry about it much since there is a very less probability that a currency split may happen.
But in case of a currency split, there can be two scenarios:-
l. Your Ether balance will stay the same on the chain which wallet provider selects to support and you will be able to use them.
2. Your wallet provider will offer you a chance to keep your token balance on both chains or to choose one of them. But, this is a very lengthy process and may take even a month.
In conclusion,I would like to say that the day is not far when Blockchain will start disrupting each and every sector one by one. 😄