The Ethereum network has activated its “London” hard fork, which is the latest update to the network’s Proof of Work algorithm. In the past, hard forks were done solely to incorporate new functionality into the network, but now, if there is a change in consensus, it may be hard for the network to revert to the old version. This fork is the first block to implement the Ethereum Improvement Protocol, which will become mandatory on the network in February.
Ethereum is a decentralized virtual machine, or DVM, that runs smart contracts on a global computer network. Many think that Ethereum will be the blockchain technology of the future, but it has had its share of blips in the past, including the DAO hack, a controversial hard fork, and a period of paralysis due to political debate. Now, the Ethereum community is preparing for the next step in its evolution, a hard fork that will upgrade Ethereum’s software and bring it closer to a global consensus.
Ethereum created a new hard fork in the protocol to afford two-layer security at the third epoch. The “London” hard fork, as named by the community, enables additional security for the smart contract platform, especially for complicated smart contracts.
It’s hard fork day in crypto world, and everyone appears to be thrilled about the recent improvements to Ethereum’s network.
We won’t get into technical specifics in this report, but MacKenzie Sigalos, a CNBC reporter, does an excellent job of establishing expectations for the typical user in the aforementioned piece.
In summary, fees are unlikely to be cut, but they will likely stable.
What’s more intriguing is that a part of the fees that were previously paid to miners will now be burnt.
It’s bad for miners, but it’s wonderful for hodlers since it lowers supply.
No, ether is not a deflationary asset since the quantity issued will still be more than the amount burnt.
It does, however, make the digital currency more deflationary than it was the day before.
The current crypto surge has been led by ether, not bitcoin, as I had the pleasure of discussing on Australian Business TV last night, or early this morning Aussie time.
Only $15 billion is available.
The Federal Reserve has been printing enormous quantities of money recently, as you are all aware.
On a monthly basis, they generate about $120 billion from thin air.
Despite the fact that the economy is well on its way to recovery, stock markets are at all-time highs, and their activities are creating alarming levels of inflation, they continue to do so.
Federal Reserve Bank of Dallas President Robert Kaplan, a member of the Federal Open Market Committee, questioned the effectiveness of the monthly injections and openly expressed his concerns that they are accomplishing anything to generate employment in an exclusive interview with Thompson Reuters released yesterday.
As a result, he modestly suggested that the Fed gradually reduce the amount of assistance, beginning with a $15 billion decrease each month and potentially reaching zero in approximately eight months “plus or minus.”
The Fed’s balance sheet, which has recently exceeded $8 trillion, may be seen here.
Even if they manage to reduce their present money production by $15 billion per month for the next eight months, a plan I doubt they’ll be able to keep, the blue line would still increase by more than half a trillion dollars by April, according to some simple math.
This is comparable to when a heroin addict tells you he’s going to cut down and will be totally clean within the next year…. right.
Related Tags
This article broadly covered the following related topics:
- eip 1559 date
- how high could ethereum go
- ethereum activates london hard fork date
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