Ethereum is the second largest cryptocurrency in terms of market value and has already conquered many investors in the crypto universe, having stood out in recent years due to the huge increase in its price.
Emerged in 2013, with the revolutionary proposal to run smart contracts and decentralized applications (DApps). However, it is a project that needed advances along its path and is going through a period full of news.
In August 2021, London Fork happened, which brought some proposals allied to it. Among them is EIP-3553, which proposed delaying the difficulty pump to December 2021.
In this scenario, the two Ethereum developers, Tim Beiko and James Hancock, have just released a new proposal (EIP-4345) with the intention of postponing Ethereum’s difficulty bomb protocol until next year.
Such protocol aims to make the Ethereum mining process more difficult to be carried out, thus making the mining of this cryptocurrency a non-profitable activity.
In other words, the difficulty bomb makes the mining algorithm calculations proof-of-work (PoW) are more complex, offering lesser rewards to miners, leading to the so-called “glacial age”.
This term means that there will be a blockchain freeze, as it has become very difficult to mine and consequently stops producing new blocks. The intention is to bring a greater degree of security, with regard to attackers who try to fork the network.
The Difficulty Bomb will cause miners to look for other chains to mine or simply turn off their equipment, eliminating the miners. Therefore, Ethereum is able to transfer the proof-of-work (Pow) for a network based on proof-of-stake (PoS)
With proposal 4345, it will be possible to keep miners profiting from their activities for longer. The measure was scheduled for December 2021 and the idea is to be postponed to the second quarter of 2022.
Probably, the postponement will happen, considering that the mining community will be reluctant for it, being able to profit for a few more months, more precisely, until May of next year.
With all that, the Ethereum 2.0 update is delayed. This proposal arose to improve the speed and efficiency of the network, as well as leverage Ethereum’s scalability.
However, will this picture affect the project’s investors? The answer is that we can possibly expect a certain difficulty in raising the price of Ethereum while the postponement period of proposal 4345 persists, also bringing a certain risk of entry into the asset for those who do not yet invest in the cryptocurrency.