• Developers confirmed that the Altair upgrade will take place at a block time and date.
• A bug bounty program was created by developers to compensate for any Ethereum 2.0 defects. It is worth $50,000.
• The Altair upgrade is a “warm-up upgrade” leading to the upcoming merge.

Ethereum will transition to proof-of-stake with new protocol updates being implemented in order to facilitate a smooth transition. Although the value of Ethereum is still undisputed, consensus mechanism transformation can be an important upgrade that will allow the network to evolve and compete with the upcoming Gen 3 Blockchains. As they work to create a new sequence of network components, Ethereum developers announced the date for Altair’s upgrade.

Confirm the Merge

The Ethereum Foundation announced that the Altair Upgrade will launch on October 27, at 10:56.23 (UTC). According to the announcement, this upgrade will bring support for core Beacon Chain consensus, which is light for clients, and assist developers and clients of Beacon Chain in preparing for the forthcoming merge.

PoS and PoW must work together in order to transition Ethereum 2.0. Thus, Altair creates a “low stakes warm-up” clean up of validator rewards. To avoid any penalties for downtime, each validator of the Beacon Chain must update their client.

New protocol upgrades do not impact ETH or participants in the PoW consensus chains, as they did with previous Ethereum upgrade. Instead, validators staking on the Beacon Chain are required to update the latest version in order to prevent being stuck in an “incompatible chain”

The EIP-2982 abstract, drafted by Danny Ryan and Vitalik Buterin, highlights that the Altair upgrade will introduce “punitive penalties” to secure the network for vast security threats. Thus, in the protocol, penalties such as ‘slashing’ and ‘inactivity leak’ prevent malicious validation sequences, therefore ensuring network security.

Flipside

• Ethereum’s price did not increase as expected, despite the token burning over $1 billion worth of ETH.
• Ethereum users will now be able use PoS and PoW chain after the merger has been completed.

Network Bounty

Ethereum’s staking endeavor aims to mitigate any deployments or code issues to ensure that trust is retained and propagated as the network undergoes significant changes. The Ethereum Foundation launched a bug bounty program to encourage network participants as well as ethical hackers, to report any code bugs in exchange for financial rewards.

Ethereum is offering up to $50,000 in bounty payments for those who find code inconsistencies. The bounty helps to create a robust code review process, ensuring the advancement of the network’s security ahead of the Altair upgrade.

The bounty program is established using a point-based system where rewards are attributed according to the issue’s severity. Inconsistencies in ETH 2.0 protocols are to be identified. Altair upgrade issues weigh twice. Four severity levels have been created, which offer rewards that vary from 50,000 DAI up to 2,000 DAI depending on how severe the problem is.

Expectancy for a Network Spike

Ethereum 2.0 is moving towards its desired form, with the chain merge slowly being completed. Ethereum, which has more than 8.1 million ETH tokens, is experiencing development delays to ensure network stability. Superphiz.eth, a Twitter user and consultant to the Beacon Chain community, stated that the final merger is likely to take place in 2022.

Still, Ethereum is able to transition into a new age. Vitalik pointed out that even though the update does not conform to the community’s demands, it will help ETH tokens increase in value as they follow a deflationary model. Since the London Hard Fork was implemented, ETH tokens worth over $1B have been sold.

Why you should care

As market prices changed, Ethereum has remained silent and followed the dots. However, Ethereum is becoming more scarce and ETH tokens could eventually separate from the BTC-ETH pairing. This would allow them to rally even without a catalyst agent.

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