Multiple Ethereum Hard Forks is scheduled to occur in January 2019. These updates or upgrades are intended towards implementing better software than currently in place. The major takeaway in this fork is the foundation for the transition from POW (Proof of Work) to POS (Proof of Stake).
There are two types of Fork, soft fork and a hard fork. Leaving the most technical part, the former is backwards compatible, while the latter is not. A hard fork can create a chain split if the network after the upgrade divides and uses two different software, the old and new. In that case, a person holding any coin in the network previously will hold a copy of the same in the new chain as well. Though it seems like free money, there is more to it. Like, even though you hold the new coin, except P2P transfers (if you own the wallet/private key for the transaction) you cannot sell it anywhere else, as generally during a fork like these, exchanges stop deposits and withdraw. Also, only some exchanges, which are quick enough start to accept both the coins in the network. Thus, it will be a matter of time and support from the community and exchange to see how much the new coins are worth. Also, the worth in new coins can also lead to depreciation to the old coin you have.
But what happens to the ERC20 Token if chain splits?
If there comes a situation like a chain split, then you will have ERC20 tokens in both the network as well. All the smart contracts will be available in both the networks equally. But which ERC20 will have the worth is a subject of discussion between the token team, the exchanges, the community, etc.
Which are the multiple forks going to happen?
Namely, there would be three forks going to happen:
- Classic Vision
- Ethereum Nowa
While Classic Vision and Ethereum Nowa are hard forks which intend to use the history of ETH to create their own new blockchain with minor/major upgrades. Constantinople is more like a system upgrade to Ethereum. It would be better to cautiously move forward with claiming hard forked coins from Classic Vision and Ethereum Nowa as multiple scammers have tried even before to get your private key so that they can have your ETH.
How can I safely get these hard forked coins?
If you really want to get your hands on these coins with absolutely no danger? There is a method to do that. Please follow these steps carefully to get your hands on the new forked coins with absolutely no danger at all!
- Create a new ETH Wallet, say ‘Wallet Fork’ where you have access to the private key
- Transfer all your ETH for which you want to claim the new Token to ‘Wallet Fork’ before the snapshot period
- Once the new forked coin team says that they have taken the snapshot, transfer all your ETH to your other wallets/exchange. DO NOT KEEP ANY ETH/TOKEN IN THAT WALLET EVER!
- Once the new forked coin team has provided you with the step by step way to claim it, use your private key/wallet details to do so. If they ask you to download any piece of software, do it in a Virtual Box Environment, where you don’t have any other Crypto Wallet Software available or with a Live Boot OS.
- NEVER EVER use the wallet you created ‘Wallet Fork’ to store any ETH again.
By the above method, we believe you will get the new forked coin, if the team is genuine. Also, your ETH will be safe.
The upcoming Constantinople hard fork includes five different Ethereum Improvement Proposals (EIPs) to smooth the transition from Proof of Work (PoW) protocol to Proof of Stake (PoS) protocol (Casper update)
Date: January 16th, 2019 at block 7,080,000. – (Around 7:00 AM UTC)
EIP 145: (https://eips.ethereum.org/EIPS/eip-145) Introduce native bitwise shifting as a more efficient method of information processing.
EIP 1014: (https://eips.ethereum.org/EIPS/eip-1014) Aimed at providing a better scaling solution based on “off-chain” transactions.
EIP 1052: (https://eips.ethereum.org/EIPS/eip-1052) Allows the optimization of large-scale code executions on Ethereum.
EIP 1234: (https://eips.ethereum.org/EIPS/eip-1234) Reduce block mining rewards from 3 ETH to 2 ETH and delay the “Difficulty Bomb” for 12 months.
EIP 1283: (https://eips.ethereum.org/EIPS/eip-1283) Mainly benefits smart contract developers by reducing excessive gas costs.
If you didn’t understand what is said above, do not worry. You just need to understand that, with these upgrades, Ethereum network would be much more suitable to take more transactions per second and would be much faster in the future than it is now. DApps would run much better than it did before and mining after another update, called Casper would be much more Eco-Friendly and convenient for everyone.
What do you think the price of Ethereum will be just before and after this fork? Share your thoughts in the comment!