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Ethereum Hard Fork: Constantinople Explained, Beware of Scams.

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Ethereum is having the Constantinople hard fork on 16th January. Ethereum Nova is basically fishing for people's private keys and stealing money.

Ethereum is having the Constantinople hard fork on 16th January and the first thing to note is that it is a hard fork so there will be a new Ethereum blockchain but its really important to point out that this is not a contentious fork. When we earlier had the Ethereum classic and Ethereum split, there was a serious disagreement on different concepts and we had two camps who went their own separate ways over that conflict.

Constantinople: A Non-Contentious Fork

Now with the current Ethereum hard fork, it’s not contentious, the assumptions are that the miners will be switching to the new chain, all of the current smart contracts on the current Ethereum blockchain will be replicated on the new chain. This is really about an upgrade to the Ethereum blockchain overall and not some kind of split between the community. Due to the upgrades to the Ethereum blockchain being so significant, this is why they require a hard fork. There are some major changes that are going to take place and because of that, they need to do a hard fork.

Whenever there is a hard fork, there can be a new coin created but Constantinople is an upgrade so a split is not a very probable outcome. Now there is the potential that at the 11th hour, some big mining pool could decide that they don’t like them and they want to go to their own separate direction and make a new coin. That’s possible but most likely there will be no new coins produced.

Currently, Ethereum is in an absolute critical transition phase. The transition phase is either going to make or break Ethereum in the long term. That is, of course, the move from Proof of Work to Proof of Stake. The Constantinople upgrade is a part of that upgrade. If Ethereum wants to stay the preeminent leader in the Dapp world they have to scale. We do have the layer 2 scaling solutions but the new upgrade is going to make Ethereum cheaper and faster and at the same time it will be decreasing the reward for mining down from three Ethereum a block to two Ethereum a block.

 

What will happen to your ERC20 tokens during the Constantinople upgrade?

ERC20 tokens are a form of smart contracts running on the Ethereum blockchain. So they will migrate to the new chain with everything else. So there is absolutely no need to do anything. In fact, the new Ethereum improvements are going to make your ERC20 and ERC721 tokens require less gas.

 

Constantinople is helping to Optimize State Channels:

Another important part of the Constantinople upgrade will be helping to optimize state channels. So we could actually really see the second layer solutions taking off in a big way. The hard fork is going to help make that process even easier.

 

ASIC Resistance: Not included in Constantinople

An important thing to know that is not being included in the Constantinople hard fork even though it is being discussed at the moment is ASIC Resistance. There has been a proposal put forward to make progressive proof of work that would eventually block Asics, which are giant mining boxes or specific computers for mining cryptocurrencies. Previously, Ethereum was only mineable using a graphics card but Asics have changed the game and substantially a lot of home miners or smaller miners are very upset about these changes and do want to see the ASIC Resistance brought in but this is not going to be happening during the current hard fork.

 

If you are an Ethereum Miner:

If you are an Ethereum miner are you are mining via a pool, the pool operators will be updating the software, so again you don’t need to do anything.

 

Beware of Scams!

Kindly beware of scams. There is already something going around called the Ethereum Nova which is basically fishing for people’s private keys and stealing money. Just remember that you don’t have to do anything specific for the Constantinople hard fork. Don’t put your private keys anywhere, there’s not going to be any free airdrop or any free tokens. These sites that you see claiming to be alternate forks are going to be nothing but scammers. So you really don’t need to do anything except to avoid giving these people your private keys so they can steal your money. Be careful!

 

What if your Ethereum or tokens are on an exchange:

Although you should never be storing your cryptocurrencies on an exchange as an exchange is not a safe deposit box, it is a marketplace. But if you are running trades, you can actually leave your cryptocurrencies on the exchange and they are going to be fine as all major exchanges have already come out saying that they are supporting the hard fork and they will be running the upgrade so again you don’t need to do anything.

 

What are your thoughts on the Constantinople hard fork? Tell us in the comments section below.

#Ethereum

ETH Updates: Ethereum 2.0, Louis Vuitton, Chainlink and Price Analysis

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Joseph Lunbin recently commented on Ethereum 2.0 stating that we will see Ethereum become a 1000 times more scalable within 24 months.

Ethereum is showing a lot of strength currently doubling in price since March. At the time of publication, Ethereum is trading around $250. If the momentum continues, ETH might soon reach the $300 mark too however, the resistance around $280 where the price got rejected earlier is quite tough and may require a few tests before ETH is actually able to break through it.

ETHUSD Price Chart 20th May

ETH/USD Price Chart 20th May

A report came out a few days back that Ethereum Whales hold 1/3rd of all ETH in comparison to Bitcoin where the whales control 1/5th of it. Just 376 people have more than 30% of all Ether. The research did exclude all exchanges. So these 376 people are responsible for a relatively small volume of transactions which is approximately 7% and therefore don’t actually have a strong influence on the price of ETH. However, when these addresses do activate to sell off large amounts, they can actually have large effects on the cryptocurrency markets.

 

Ethereum 2.0 TestNet:

Joseph Lunbin recently commented on Ethereum 2.0 stating that we will see Ethereum become a 1000 times more scalable within 24 months. The time seems longer when we realize how many other blockchains are faster and cheaper than Ethereum and are in one way or another working today but Ethereum does maintain a very strong network effect with massive partnerships, a huge developer community, and various large projects.

The testnet for Ethereum 2.0 has been launched just a couple of weeks ago by Prysmatic Labs with staking implemented. It is just a testnet but it is worth remembering that Ethereum 2.0 is a multi-year effort to create a fully decentralized permissionless platform from programable cryptocurrency and that the move away from Proof of Work must be done correctly as billions of dollars in value are at stake here and retaining high security and decentralization must be adhered to.

 

The key pieces of the Ethereum 2.0 upgrade are as follows:

  • The Proof of Stake switching how Ethereum is mined, how the network is secured and how new coins are created.
  • Sharding: In order to increase scalability and transaction speed by splitting the large database into smaller and more manageable parts.
  • Ewasm: This allows for codes to execute faster among other things as well as expanding coding options and the capabilities for the Ethereum virtual machine.
  • Plasma: This is an extra layer that sits on top of the network that can essentially handle massive amounts of transactions. This is being approached by various teams at the moment. Scaling could be happening way sooner than we expected via Plasma.

All these are just a tip on the iceberg in terms of what’s actually happening in the background right now in terms of building Ethereum 2.0 and there is a lot more happening than these things.

 

Louis Vuitton and Christian Dior to use Ethereum:

In a recent announcement, Louis Vuitton and Christian Dior revealed that Ethereum will be used to verify luxury goods for the fashion giants. ConsenSys has teamed up with the fashion houses and Microsoft in order to build a blockchain powered platform that allows customers to verify the authenticity of their luxury goods. The project is being called Aura.

 

It is based on the Ethereum blockchain & utilized Microsoft Azure and has been designed to serve the entire luxury industry with powerful product tracking and tracing services, and will also offer ethical and environmental information as well as for instructions related to product care and warranty services.

 

Chainlink Update: Oracles to go live

The decentralized oracles are scheduled to go live on the Ethereum mainnet this month. The decentralized oracles are designed to help smart contracts interact with real-world data. A key feature for many smart contracts which are being built that intend to have that crossover into the real world and require that real-world data. This is an important move for both Ethereum and Chainlink as it will be the largest and most reputable

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The Reason for Ethereum Price Surge: CFTC ETH Futures?

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Ethereum increased 12% in the last 24 hours rising above $180. According to a recent publication, CFTC is considering to launch Ethereum Futures Contract.

Ethereum saw a tremendous 12% increase in the last 24 hours rising above $180 level with other major cryptocurrencies such as bitcoin showing only a proportionate increase. According to a recent publication by CoinDesk, CFTC is considering to launch Ethereum Futures Contract.

 

CFTC Ethereum Futures

A recent publication on CoinDesk suggests that the United States Commodity and Futures Trading Commission, also known as CFTC is all set for considering an Ethereum Futures Contract provided that the same meet the companies criteria.

 

Previously, when Bitcoin Futures were granted permission in the ending month of 2017, both the Chicago Mercantile Exchange (CME) and US Commodities and Futures Exchange (CFTC) were flooded with demands. Similarly, Ethereum futures would also attract a lot of institutional investors even though the investment in futures is not a direct investment and only a betting on the future price of the commodity or asset.

 

ETH price has seen a major crash since last year when the coin was trading at more than $800. Since the last many months, ETH has been trading below the $200 range and even fell below $100 sometime back. The recent rise in the price of ETH might be because of the CFTC taking interest in the cryptocurrency.

 

CFTC’s interest in ETH started in late 2018 when they issued a Request for input to seek more details on Ethereum’s technology and its model (consensus).

 

Ethereum Price Surge:

As soon as the publication went live, the price of Ethereum saw a tremendous surge, rising more than 12% in a matter of hours from around $160 to around $180. Not only the price but also the daily trading volumes increased to more than $8 billion.

ETHUSD Price Chart- Coinbase

ETH/USD Price Chart- Coinbase

Currently, Ethereum is trading around $177 as it corrected a few points lower after rising to more than $180. If ETH is able to close well above the $180 resistance level, there are high chances that ETH will rise above this level soon to move towards $200 range if the buyers stay strong.

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Alert: Ethereum at risk of theft, Save your wallets.

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The so-called Blockchain Bandit has been exploiting weak Ethereum private keys and has so far managed to accumulate a fortune of 45000 Ethereum.

A shocking report came out on Wired that shows how one bandit has been stealing millions of dollars in Ethereum.

 

Ethereum Bandit:

The so-called Blockchain Bandit has been exploiting weak Ethereum private keys and has so far managed to accumulate a fortune of 45000 Ethereum. The hackers are devoting a lot of computing resources to scanning the Ethereum blockchain, watching for new wallets and when they have the keys, stealing the cryptocurrency.

 

The hackers have been able to exploit these addresses due to surprisingly weak private keys which have been generated. The odds of guessing a randomly generated Ethereum private key is 1 in 115 quattuorvigintillion. According to the specialist who discovered this theft that was happening, the task of identifying a random Ethereum key is like trying to choose a grain of sand on a beach and then later asking a friend to find that same grain of sand among a billion gazillion beaches. However, Ethereum was stolen despite these wild odds and 45,000 Ethereum is quite a lot of money.

 

How did it happen?

It specifically happened with Ethereum wallets that did things like cut off keys at just a fraction of their intended length. Either due to things like hoarding errors or other activities or wallets that included malicious codes, basically corrupting the randomization process to make the keys easier to guess.

 

Out of the 34 billion blockchain addresses that the researchers scanned, they found 732 addresses with easily guessable keys which basically means that only a small fraction of the total amount of keys are likely to be easily guessable. Most of the work seems to be done already though as the thieves seem to have a wast pre-generated list of keys as was evidenced by the researcher placing a dollar worth of Ethereum into a previously unused address which had a weak key and that Ethereum was immediately stolen by the bandit’s bots.

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