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Ethereum is slated for another upgrade this week. Here’s what to know

Arrow Glacier is an upgrade for the EthereumNetwork, slated to go into effect on Dec. 9.

This upgrade pushes back “The Upgrade”difficulty bomb“This could potentially slow down or freeze mining Ethereum,” Tim Beiko tells CNBC Make It. At that point, Ethereum should have moved from being a proofofwork mining model to becoming a proofofstake model.

Beiko states, “The ‘bomb’ won’t exist anymore on the network after the transition.”

Arrow Glacier is not expected to directly impact investors. Here’s how you can learn more about it and what its purpose is.

Supporting Ethereum 2.0

It’s useful to understand what the “difficulty Bomb” is. Ethereum 2.0, or Eth2, first.

Ethereum is currently operating on an algorithm called a proof of work Model where miners compete to solve complicated puzzles to verify transactions. The model has a high level of environmental impact and requires a large amount of computing power.

Ethereum intends to move to a blockchain in 2022. proof of stake model, where users can only validate transactions according to how many coins they hold, rather than the energy-intensive mining rigs used now. Eth2 has made this move.

Eth2 is a hugely important project, as it will transform the Ethereum infrastructure and eventually render mining obsolete.

The “difficulty-bomb” is being proposed by developers to encourage proof of stake. This will make it significantly harder to prove work mining. Developers will have more time to focus on Eth2 while the bomb is delayed.

Eth2 is a new protocol that will allow Ethereum to be more flexible, secure, and long-lasting. Proof of stake won’t require as much energy than proof of work. This will reduce Ethereum’s environmental footprint by 99%. previously said.

The change will mean that Ethereum mining is no longer generating revenue.

It’s difficult to forecast the future prices of any asset. However, many speculate that Eth2 might have an effect on the price.

Still, Eth2 has some way to go.

Ether is currently trading at around $4,370According to Coin Metrics, it is.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.