In a proposal that will alter the Ethereum blockchain’s economics fundamentally, a group of 14 core ETH developers decided to delay the ‘difficulty bomb’ by including the code in the cryptocurrency’s upcoming hard fork, Constantinople. The hard fork is essentially a protocol upgrade which will pave the way for Ethereum’s smooth transition from the Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus mechanism, which will ultimately increase efficiency and scalability and lower the transaction fees on the network.
According to a Github post, the developers have accepted the move EIP-1234 which will adjust the block rewards to 2 ETH from the existing 3 ETH. In addition, the EIP has proposed that the ‘difficulty bomb’ be delayed by 12 months.
Ethereum’s ‘difficulty bomb‘ refers to the increasing difficulty of puzzles in the mining algorithm which will considerably slow down the production of blocks on Ethereum’s blockchain. It is essentially a deterrent for miners who may continue with PoW, even after Ethereum’s blockchain adopts the PoS consensus algorithm.