06 January, 2020 | AtoZ Markets – The Ethereum blockchain has seen a lot of activity in the past month. After two hard forks and many difficulties, the project again made the headlines. Recent statistics show that its block time has now decreased by 25%.
Ethereum Block Time Reduces by 25 Percent
Before Ethereum Muir Glacier Hard Fork, the project needed about 17 seconds to complete each block. Now, the hard fork that once again postponed the time bomb has also managed to cut block times by 25%. And it is making each block only last about 12.96 seconds.
A consequence of this change is the fact that Ethereum’s supply is likely to increase by around 25%. In other words, the effects of delaying the time bomb are already noticeable. The number of mined coins after the time bomb increased from 10,000 to 12,000 ETH, with experts expecting the emission to be around 13,500 ETH.
The decrease block time results in a higher number of blocks mined daily and a higher Ether (ETH) inflation. According to statistics, during January 1, miners created 4,980 new blocks and 10,237 ETH. Meanwhile, on January 4, network miners created 6,570 new blocks and 13,437 new ETHs. This represents an increase of almost 32% in the number of blocks and more than 31% in block rewards.
Read More: GBPUSD Fundamental Analysis Ahead of UK Services PMI
Ethereum Muir Glacier Hard Fork Difficulty Bomb Delay
If the delay of the difficulty bomb is generally considered to be a good thing, it will also drive up the inflation rate to around 5% per year. Besides, many expect the inflation rate to further increase in summer 2020 if the hybrid PoS is finally launched.
Once the inflation rate reaches these levels, experts believe that it will finally stabilize, at least until September 2021. Although the new hard fork brought about the third delay of the difficulty bomb, the bomb is not yet entirely out of the game. Instead, it will return in about 20 months, according to the developers.
However, if the developers’ plans come to fruition, the full Proof of Stake could be launched before that happens. Then PoW will be thrown away entirely. Fortunately, the inflation rate will be 5% or higher if it gets there.
After all, Ethereum’s switch from PoW to PoS is an extremely complex issue and, as such, it cannot rush. However, the developers are confident that they will finally hit their target. The inflation rate will come back to 0.22% and stabilize.
Think we missed something? Let us know in the comments section below.