Photo credit: ETHNews
According to the Ethereum Blog, a scheduled upgrade of Ethereum called Metropolis, is expected to take place on Monday, 16th October 2017. If you have been following the Bitcoin roadmap, you might be wondering whether this Ethereum upgrade – the Metropolis will lead to a chain split and generate yet another new token? And if so, how will the Metropolis upgrade affect the Ethereum price? Don’t worry; this article may shed some light to your concerns.
Metropolis is the third stage of the Ethereum’s four-stage upgrade road map. This update will occur through two separate hard forks, which are Byzantium and Constantinople.
Simply speaking, Metropolis represents changing the underlying Ethereum protocol and creating new rules. This solution is expected to reduce the malicious presences within the broader Ethereum ecosystem.
“Metropolis upgrade could fix the problem of difficulty adjustments, ‘returndata’ operations, ‘static call’ operations, new precompiles, a difficulty delay feature and embedding transaction return data in receipts.” Coindesk reported.
The outcomes of Metropolis
So, what is the impact of Metropolis upgrade? Vitalik Buterin, the co-founder of Ethereum mentioned this hard fork could provide a more efficient, secure and robust infrastructure for decentralized applications and developers. Here are some critical features of Metropolis:
- Adoption of a new cryptographic tool (zk-SNARKs) improves privacy and auditability.
- Smart contracts would be more secure.
- Mining process will be faster and cheaper.
Impact on Ethereum price
How will the Metropolis upgrade affect the Ethereum price? This might be the hottest question among all Ethereum investors. However, the fact is: no one really knows and it will based solely on supply and demand.
There’s a chance that Ethereum price goes down as the mining process will be more difficult, on the other hand, the upgrade could spark more investors’ interest on Ethereum that may eventually push the price goes up.
Some Investors are worried that Metropolis would lead to a new token to be formed. But since this upgrade is anticipated, we tend to believe it is unlikely to lead to a split, especially when the community seems rather united on this issue thus far.
To conclude, Metropolis would make Ethereum network easier to use – faster and more secure, paving a better way for its future development.