Ether price is on a record-breaking price rally ahead of the berlin upgrade. The digital token from the Ethereum blockchain has gone beyond $2,400 for the first time in history.
ETH is the second biggest cryptocurrency after bitcoin. It is used by traders as well as developers across the globe. Ether allows the creation of dApps or decentralized applications using smart contracts. At the time of this writing, ETH is trading at $2,446.
Ethereum blockchain uses a proof-of-work model. This model has a downside. The gas fee for verifying blocks increases as more and more people join the network. Resultantly, the platform is becoming unsustainable with a scaling problem.
To solve the problems, the Ethereum blockchain’s upgrade to ETH 2.0 is on the cards. It will transfer the model from Proof-of-Work (POW) to Proof-of-Stake (POS).
One update on Ethereum, which investors and traders are looking for, is Berlin Upgrade. It will introduce multiple protocols to the network. Some of them are:
EIP-2565 = reduce the cost of the ModExp precompile. This will help calculate the gas prices.
EIP-2929 = will ‘increase’ certain gas costs when used for the first time in a transaction.
EIP-2718 = will introduce a new transaction module that will support multiple transactions.
EIP-2930 = will transaction type with optional access lists. This particular EIP will help alleviate some of the newly imposed gas prices from EIP-2929.
Berlin upgrade will take Ethereum one step closer to ETH 2.0. The process of the transaction fee will be fully revamped.
Miners are slightly unhappy with the upgrade. Firstly, the fee will go to the network rather than miners. Thus, the supply of ether coins will diminish. Secondly, the reward ratio is expected to be slashed by half.
Gas prices, however, will come down after this upgrade. Therefore, developers are eagerly waiting for it to happen.