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Ethereum's price just rose significantly due to the newest hardfork (you can say hardfork is like update). It was a long-awaited update that brought us many improvements. Let’s dive into the details.

As we mentioned many times in our previous articles, Ethereum is one of the most powerful and potent chain in the market for set of various reasons. Not only it has wide developer’s infrastructure, but it survived many stress test, attacks and all kind of hacks. It is really consolidated these days and building on it is a great pleasure for us. We do know that in the following years it will be more and more refined and it is the solution for the future. So why the fork made such a difference, so the price skyrocketed?

shangai created in midjourney

Firstly, the beacon chain where the staked Ethereum was hold is opened. That means stakers can now withdraw their currency from the staking pool. This improvement is called as EIP-4895. Working as proof-of-stake blockchain Ethereum now gives full flexibility to the users. Quick reminder how it works. To validate transactions, there is no need to make operational work as it is in proof-of-work (example: Bitcoin). Validations comes from the nodes that has at least 32 Ether. However, the ones that staked their 32 Ether could not withdraw it. Of course, they were getting their earning as fees from validating the transactions. Much like miners back in the days. Fun fact: 15% of Ethereum In the circulation is in this kind of stake pools. It equals to 18,1M of Ether, which transfers to over 36B of dollars at the moment. Mind-blowing. After the fork we’ve seen 285 withdrawals for about 5,5K of Ether worth 10M. It’s not much. Actually the option of easy withdrawal it actually may encourage more people to stake their ETH, because now they know they can have it back any time. Ethereum still staying strong.

blockchain as seen by midjourney

The thing is that gas cost (fees you pay for transactions and other activities possible on Ethereum chain) can be high. It is not the optimal situation as blockchain should be competitive to other solutions. You don’t pay to transfer your money from one bank account to another. So why pay to do this on Blockchain? I think we will get there but for now new hardfork promises to lower the gas fees across the chain. This need to be tested as we will strongly benefit from that. Cost of certifications should be more affordable. Even the man himself, Vitalik Buterin – creator of Ethereum – said that making Ethereum cheaper and faster will be the next point of focus.

What’s great about Blockchain is that everything is transparent and we can see every action made on the chain. The hardfork was prosecuted in block number: 194048. We can now officially say that Ethereum went full POS mode.

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