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Stalled Hard Fork Of Ethereum Plunges Prices

January 17, 2019

The deferred hard fork of Ethereum on Tuesday led to one of the sharpest price fall for the third largest cryptocurrency in terms of market capitalization. The scheduled upgrade Constantinople was much awaited as it was expected to resolve many of the current issues the currency was battling such as scalability.

According to Ethereum price tracking website, the average loss of price in the past 24 hours for this decentralized ledger technology currency was nearly 3%.

In an official statement, Ethereum developers reported that the delay was caused due to certain vulnerabilities in the security system identified by one of the leading auditing Agencies for network security – ChainSecurity

Security lapses

As details provided in the blog, the chances of attackers exploiting the loopholes and stealing from the use of would be a bigger risk for the platform. Providing details of the likely fraud that could occur with the existing security loophole, ChainSecurity said that in an instance where parties decide to split deposits by agreeing to payout; attackers could manipulate code and create deposit accounts for a pair of attackers. This could be done by including the first address of the attacker contract and second address in another attackers account.

Currently, developers are engaged in fixing this security lapse. But delays in upgrade on the theorem platform are not new. Earlier scheduled upgrade expected to go live by November was delayed due to network bugs. In the context of the current security upgrade, there is no time frame fixed on when the upgrade would actually happen.

Constantinople delayed

Now that the latest upgrade to Ethereum platform, Constantinople, is delayed the question of scalability of this blockchain once again comes to the forefront. In fact, it was expected that the upgrade that is part of the larger move to ensure a proof-of-stake consensus algorithm for 2019 would be completed at the earliest. Such a change would marker shift from the earlier proof-of-work principle adopted for the platform. Since the latter technology demanded extensive use of energy, developers wanted to move away from this intense energy depleting methodology to a sustainable proof-of-stake algorithm method.

In many ways, this upgrade was considered as a hard fork, with high expectations that the cryptocurrency would then split into two. It was also regarded as a non-contentious issue since validators were willing co-operators and collaborators in explaining the software.

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