The Arrow Glacier, an upgrade to the Ethereum Network, will take effect on December 9.
The upgrade pushes back the so-called “difficulty bomb” and can slow down or freeze mining on Ethereum. In June 2022, Tim Beiko, Ethereum’s protocol developer coordinator, told CNBC MakeIt. By that time, developers want to move Ethereum from a proof-of-work model for mining to a proof-of-stake model.
“After the transition, the’bomb’will no longer exist on the network,” says Beiko.
The Arrow Glacier does not directly affect investors, but here’s what you need to know about the “bomb” and its purpose:
Supporting the transition to Ethereum 2.0
To understand “Bombs of Difficulty”, it is helpful to first know about Ethereum 2.0, or Eth2.
Currently, Ethereum is running on a proof-of-work model, and miners have to compete to solve complex puzzles to validate transactions. This model requires so much computer power that it has received a lot of criticism for its environmental impact.
In 2022, Ethereum will move to the Proof of Stake model. This model allows users to validate transactions only based on the number of coins they have, rather than the energy-intensive mining rigs currently in use. This move is part of Eth2.
Eth2 will have a huge impact as it modifies the Ethereum infrastructure and eventually eliminates mining.
Developers are planning to introduce a “difficulty bomb” to motivate the transition to Proof of Stake. This is to make proof of work mining significantly more difficult. By delaying the “bomb”, developers can spend more time working on Eth2 before the shift.
Once implemented, Eth2 aims to make Ethereum more scalable, safe and sustainable. Also, Beiko said earlier that Proof of Stake does not require the same amount of energy as Proof of Work and reduces Ethereum’s environmental impact by 99%.
This shift also means that Ethereum mining is no longer profitable.
It is impossible to predict the future price of an asset, but some speculate that a successful transition to Eth2 could affect the price of Ethereum.
Nevertheless, there is a long way to go before Eth2.
According to Coin Metrics, ether is currently trading at around $ 4,370.
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