Explaining the Byzantium Hard Fork In Ethereum.
The hard fork remains a crucial update to ethereum’s blockchain implemented or faster transaction and greater security on the blockchain making smart contracts readily suitable for use in business transactions
Ether, Etheruem’s cryptocurrency skyrocketed partly because of the promise of smart contracts on its blockchain. The investors have rightly envisioned a future for the smart contracts thereby becoming the standard way to transact for multiple industries.
The investors are forgetting that it is still a nascent technology while finding enthusiasm for the bright future. The blockchain came alive just 3 years ago and is still under construction. It still has a lot to scale the processing and transaction power.
Introducing the Byzantium Hard fork to update the blockchain in 2017 was implemented at 4,370,000. The fork has Ethereum Improvement Protocols (EIPs) that improve privacy, scalability, and security.
According to the road map, there are our live releases planned. The first is Frontier, released in July 2015, considered to be a beta release for developers to help experiment and develop decentralized apps. The second was Homestead released in March 2016 to stabilize the platform. The third one, Metropolis has two parts and the most significant evolution into mass acceptability depending on the nature of changes. The Byzantium hard fork works as a part of this release. The final upgrade called Serenity has been delayed owing to certain technical glitches.
The importance of Byzantium to the Ethereum ecosystem.
Intending to make Ethereum lighter, faster and more secure, the Byzantium fork is an important step in the evolution of the cryptocurrency. Below are the significant changes and the effects of the fork on the ecosystem.
- Transaction Status Codes are Embedding In Receipts
It has successive blocks through which it communicates transaction status. Before this, the Merkle tree was the root parameter in referencing transactions. Preventing parallel processing, it enabled sequential sequences of transactions to fasten the chain formation. But with Byzantium, the blocks conducted parallel processing of multiple transactions while simply communicating success or failure. Thus the ethereum blockchain processes transactions faster than earlier.
For expedited processing, parallel processing creates parallel blockchains or second layer solutions. At Ethereum, the team lead, Christian Reitwiessner is already working on the second layer called Plasma. His wise words are as follows, ‘the scalability is not received from the blockchains relieved from their transaction load by creating smaller chains and moving the transactions there. Scalability comes into life by the user not verifying every single transaction sent to the system.’
- Enhanced Cryptography
The fork has four contracts native to Ethereum’s blockchain with code designed to lessen power requirements for implementing zk-snarks, the cryptography that’s becoming the privacy standard for future transactions with cryptocurrencies.
Zero-knowledge proofs as implied are mathematically intensive computations enabling systems to prove that they have requisite cryptographic keys without divulging the contents. It ensures computation-intensive operations to be performed directly on CPU without using Ethereum’s client consuming less overall power.
- Reduce and do away with rewards
By reducing the block rewards from 5 ether to 3 ether Byzantium reward is in line with the eventual plan to do away with the block rewards moving to Proof of Stake algorithm with approved nodes and number of coins.
Ethereum has Ethash algorithm that is a modified version of Bitcoin’s Proof of Work algorithm. The refined version of Proof of stake is used in several cryptos like Dash and Cardano helping expedite transactions on the ethereum blockchain.
Why The Byzantium Hard Fork Matter To Investors
The motive behind Byzantium is to make widespread use of Ethereum and its smart contracts. The price shot up as news of the hard fork reached the market. The number of transactions has overtaken that of Bitcoin since the implementation of hard fork according to BitInfoCharts. This makes it possible for a future of widespread use of smart contracts.
Zk-snarks ensure that the Ethereum network is used for business transactions requiring privacy. The hard fork is all set to help ethereum scale up to the promised potential.
As a word of conclusion
The hard fork remains a crucial update to ethereum’s blockchain implemented or faster transaction and greater security on the blockchain making smart contracts readily suitable for use in business transactions. With high competition in the digital currency market, the hard fork is looked upon as a promising find for making ethereum blockchain a potential of scaling most of the flaws found for the currencies currently ruling the stage. The application of smart contracts are currently under research and this fork makes it deliver more to the digital currency development worldwide. There is more to be taken into account in the digital currency market influencing the future of economies world over.