How Will Constantinople Fork Affect Ethereum (ETH) Miners?
Constantinople fork is only several days away as it is scheduled to take place once the block height is set at 7,080,000, expecting the fork on January 16th.
By far, Constantinople is the eighth upgrade of Ethereum network and should enable a smooth transition between the current protocol Proof of Work and the intended implementation of Proof of Stake.
Moreover, since Constantinople is bringing changes for miners as well, here is how some Ethereum miners are preparing for the upcoming fork that is said to come by peacefully and without any significantly visible changes on the user-end.
Constantinople Fork Will Reduce Miners’ Rewards
One of the main reasons why many miners are sharing discontent regarding the upcoming fork is the fact that Constantinople update will change the number of rewards miners are receiving for validating transactions and creating new blocks.
While the processing time for transactions will remain at 15 seconds which matches the time needed for block creation, rewards for miners will be reduced from 3 ETH units to 2 ETH.
This case is said not to take effects on big-time miners with hundreds and thousands of mining machines as they are less likely to feel a significant drop in rewards collection, while the number of independent miners will probably see a notable reduction.
Given the fact that ETH is once again trading as the third-largest cryptocurrency, dropping below the value of 140$ and suffering from bear trends, small-cap miners might not stand a chance when it comes to competing against big players.
Originally, the fork was supposed to take place already back in October 2018, however, problems with beta testing took place instead since the number of miners running t5he client was too small to handle the release, forming a delay that further brought to rescheduling Constantinople for January.
Peking University Head of the Blockchain Club Warns on Increased Difficulty and Decreased Unit Profits with the Upcoming Fork
Although the price of electricity is set to go in favor of Chinese-based cryptocurrency miners as they will be able to rely on hydroelectric power, the head of the Blockchain Club at Peking University, Chen Lei, doesn’t seem to be very optimistic regarding Constantinople when it comes to how this upgrade will affect ETH miners.
Lei claims that as the time goes by, the latest update will make mining more difficult while decreasing rewards for miners, which should already go down by -33% in oppose top the previous reward for miners.
Some miners additionally fear that if the price of Ethereum doesn’t show a bulli8sh return in the upcoming period, “the upgrade will kill a lot of miners.”
During the last time the price of ETH went below the price of 150$ which was back in November 2018 during a major price crisis in the market, it was calculated that around 760,000 graphics cards dedicated to mining ETH left the network probably as a consequence of having small-cap miners unable to cover mining expenses.
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