Ethereum has been leading the rise of the entire cryptocurrency in the last two months. It’s increased by 124 percent in the last two months. 바이낸스 거래소 한국어 So if you bought Ethereum at Upbit, it’s more than double. If you had invested using leverage on the Futures Exchange, you might have been able to make multiple to several tens of times more profit.
It was the good news of the Ethereum 2.0 upgrade that led to this rise in Ethereum. The official name of this upgrade is ‘Merge’.
However, Ethereum prices have been rising more steeply in recent years. This is because the final update scheduled for the end of September is only a month away, but another big reason is the “hard fork.”
Today we’re going to talk about the Ethereum update and hard fork.
Ethereum Upgrade Coming Soon, What Will Change
© Az1975, from Pixabay
When Ethereum is upgraded to 2.0, the biggest change is the transition from Proof of Work (PoW) to Proof of Equity (PoS).
Proof of work is a method of receiving compensation for calculating using a graphic card, and Proof of Equity is a method of receiving compensation for “Staking” Ethereum.
Moving on to the proof of equity, the problem of high-performance graphics cards and power use, which were problems with the existing proof of work method, will be solved.This also means environmentally friendly.
In addition, according to Ethereum founder Vitalik Buterin, commission fees are also greatly reduced when switching to the “proof of equity” method.
Currently, fees for Ethereum-based NFT or De-fi projects are about $1-20 dollars. Those of you who have transferred Ethereum will know, but the transfer fee alone is huge.
However, according to Vitalik Buterin, the founder of Ethereum, who recently visited Korea, the fee could be reduced to $0.002, which is one-tenth of the current level. This is possible because the proof of equity can handle much more transactions at the same time than the proof of work.
Only high-priced and high-performance graphic card owners could participate in the blockchain operation, but according to the “Proof of Equity” method, they can participate as nodes just by holding Ethereum, increasing the transaction processing speed dramatically.
But if you switch to the “Proof of Equity” method, you no longer need existing miners, and miners who have spent a lot of money buying them are bound to be negative about this method.
Of course, you can mine other coins. Typically, Ethereum Classic can be mined almost as it is. That’s why the price of Ethereum Classic has also risen by Ethereum over the past two months.
Ethereum hard fork is imminent. What if it’s a hard fork?
However, it is also possible to refuse to switch to Ethereum’s equity certification method in the first place and hard fork it with a new coin that sticks to the existing proof of work method. Hard fork is a method of becoming independent as a separate coin that is not compatible with the existing coin.
If one side can’t overwhelm the other side, a ‘hard fork’ usually occurs. Currently, developers (Vitalics) supporting Ethereum’s equity certification and miners supporting work certification are in a tight position.
First of all, it is the developers’ camp, including Vitalik Buterin, who oppose the hard fork and are in favor of converting the existing Ethereum into a stake proof method. In addition, Tether, which issues USDT coins, FTX, Digital Current Group (DCG), LINK Coin issuers Chainlink, and D-Bank are also in favor of the transition to equity certification.
It is companies such as Polonix Exchange, Huobi Exchange, Bitmax Exchange, Deribit Exchange, and f2pool that support hard forks and adhere to existing proof of work methods.
As the Ethereum update is expected to be completed in September at the latest, observers say that the “hard fork” is also imminent.
This hard fork means that the network is modified, replicated, and separated so that miners can use the proof-of-work Ethereum even after the upgrade. This allows miners to still mine Ethereum using their own mining machines.
If a hard fork occurs, existing Ethereum holders will receive both updated coins using the equity certification method and hard fork coins that stick to the proof of work method.
Several exchanges have already announced their plan to support both coins.
When I recall the memory of the Ethereum Classic, when most exchanges supported the existing Ethereum, the Polonix Exchange listed the Ethereum Classic alone. Many people flocked to Polonix at the time with the expectation that they would receive Ethereum Classic for free if they had Ethereum.
Other exchanges that saw this also rushed to list Ethereum Classic.
How can I get ETHW for free with a hard fork?
The current Ethereum trend is similar. Buterin-backed Ethereum (ETHS) is likely to support the transaction by changing the name of the existing Ethereum.
In addition, more and more exchanges are expressing their intention to support Ethereum (ETHW), a method of proof of work created by miners with hard forks.
Polonix was the first to express its intention to support again this time, and Huobi, OKX, Binance, and MEXC are reportedly considering listing.
In terms of the current trend, most exchanges are likely to be listed on ETHW as well. So Ethereum owners have both Ethereum S (ETHS) and Ethereum W (ETHW), which is a huge boon for Ethereum.
The way to get ETHW is just to buy and hold the current Ethereum on the exchange where ETHW listing is expected. That’s why Ethereum’s current rise is getting steeper.
Currently, the Ethereum upgrade is expected to take place around September 15. At least by this time, Ethereum is expected to be strong.
However, there is no market that only rises without adjustment, and it can give adjustment, so it is wise to invest in low leverage rather than high leverage in future transactions.