Ethereum’s upcoming Altair upgrade to add features to the network’s beacon chain

  • The Altair upgrade on the Ethereum blockchain is probably the final implementation before the merger with Ethereum 2.0.
  • The Ethereum Triple Halving along with staking will happen along with the Altair upgrade.

Last week, the world’s second-largest cryptocurrency Ethereum (ETH) rallied past $4000 levels. Since then the ETH price has been consolidating at $4100 as the Ethereum blockchain prepares for the upcoming upgrade.

The Ethereum developers are preparing for the upcoming Altair upgrade on October 27 that will add new features to the Ethereum network’s beacon chain. Experts call it a key development and probably the final addition to Ethereum blockchain before its merger with Ethereum 2.0. Ethereum announced the upcoming Altair upgrade in its recent blog post. It noted:

The Altair beacon chain upgrade is ready to be activated on the Ethereum mainnet. The upgrade will go live at epoch 74240 (October 27, 2021, 10:56:23 am UTC).

Ethereum developers have recently accelerated the developments with Ethereum 2.0 Proof-of-Stake (PoS) implementation. Last month, the London hardfork brought the EIP-1559 in implementation thereby making the Ethereum blockchain deflationary. This move aimed at reducing the high gas fee on Ethereum.

Related: Lark Davis gives 4 reasons why Ethereum (ETH) is set for a bullish run

The upcoming Altair upgrade will bring some changes to the Beacon chain which is the staking chain of Ethereum 2.0. Staking is the key to Ethereum’s Triple Halving which will happen along with the Altair upgrade. The staking functionality coupled with the fee-burning mechanism can result in a shortage of ETH coins. Thus, it will further fuel the rally in Ethereum. Also, the Triple Halving relies on the ETH consistently moving out of circulation due to burning and staking.

The importance of Ethereum Beacon Chain Upgrade

The beacon chain upgrade won’t be affecting the holders of ETF or its users. It majorly affects the node operators and the consensus mechanism. As the Ethereum network prepares for “The Merge,” the beacon chain upgrade will focus on the preparations for sharding.

The launch of 64 parallel blockchains dubbed the “shared chain” will most likely reduce congestion on the Ethereum network. Thus, the sharding implementation will improve the scalability of the Ethereum blockchain by multifold.

ETH set up for rally

Analysts have been bullish about the upcoming Altair upgrade to the Ethereum network. Furthermore, with the strong debut of the Bitcoin ETF, the approval of Ethereum ETF is very much likely as per a former official of the U.S. Securities and Exchange Commission.

Related: Now that Bitcoin Futures ETF is in the box, is an Ethereum ETF next?

Institutional players out of the U.S. have been already accumulating ETH. The world’s first physically settled Ethereum ETF from Purpose (Canada). The Purpose Ether ETF has increased its holdings to 76,000 ETH, up by 11,610.93 ETH tokens.

As said, the Ethereum price has rallied and is eyeing a move above its all-time high. Many analysts are expecting the ETH price to touch $10K by the end of this year.

About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

Comments are closed.