Core Developers of Ethereum (ETH) Reduce Block Reward to Two ETH, Delays Implementation of “Difficulty Bomb”

On their regular YouTube meeting which held on the 31st of August, the core developers of Ethereum (ETH) decided to delay the implementation of the “Difficulty Bomb” by agreeing that the code will be implemented in the forthcoming Constantinople hard fork.

The Difficulty Bomb

One of the fundamental objectives of the Foundation lies in the adoption of a new consensus algorithm – Proof of Stake. In order to implement this algorithm, the core developers of the blockchain project came up with a solution tagged ‘Difficulty Bomb,” and this makes the development of new blocks unfavorable and more complex.

Constantinople is aimed at making the transition from a Proof of Work consensus algorithm to a Proof of Stake consensus algorithm very smooth.

The Impact of the Difficulty Bombs on the Ethereum Blockchain

About a week ago, the core devs of Ethereum (ETH) offered three possible circumstances of the impact of the “Difficulty Bombs” on the maintenance and reduction of block rewards. According to the developers, EIP858 would decrease block rewards to one ether, EIP1234 would bring down the rewards to two ether, while EIP1295 would reduce block rewards to three ether, but it would have an effect on other factors such as the Proof of Work incentive structure.

According to a Github post, the dev team have decided to accept the EIP1234 scenario. It was proposed to delay the implementation of the “Difficulty Bombs” for about one year, to enable the chain go back to half a minute block times in winter next year, and reduce the block rewards with the Constantinople hard fork.

Ethereum (ETH) Price Today – ETH / USD

NamePrice24H %
ethereum
Ethereum(ETH)
$0.00-2.08%

At the time of writing, Ethereum (ETH) is trading at $286 after an increase of less than one percent over the past twenty-four hours. The current market cap of the digital currency is $29.09 billion and its trading volume over the past twenty-four hours is $1.41 billion.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.