Ethereum: the impact of halving prizes on prices and blocks

The Ethereum network has undergone a significant movement in recent years, with one of the most remarkable events that halve of its reward. In this article, we will deepen what happens at Ethereum's price after such an event takes place and explore if it would affect the blocking times.

What are the halving prizes?

The halving reward refers to a mechanism introduced by Ethereum which reduces the number of new token (ETH) created every year. The first halving took place in 2016 and the subsequent reductions occurred in 2020 and 2024. Every time the reward is reduced, it encourages miners to increase their mining efficiency.

The impact on the price

After half, several factors influence the price of Ethereum:

* Reduced mining costs : With less new tokens ETH created, the cost of mining increases as there are more coins available for the processing power.

* Increased blocking times : the reduction of the supply of new token can lead to longer block times, which can have a negative impact on the efficiency and scalability of the network.

* higher transaction commissions : since miners compete for valuable processing resources, transaction commissions can increase due to the increase in demand.

The effect on blocking intervals

Ethereum's blocking interval refers to the time between each block. The halving reward reduces the supply of new ETH token, which can lead to longer block times as follows:

* Reduced block frequency : With a reduction in the offer of new tokens, the number of blocks per second decreases.

* Increase in the latency of the block : this brings to the processing times of the longer transactions and a greater latency through the network.

Bitcoin's response

The Bitcoin network has not responded directly to the discharge of Ethereum by doubling the price or increasing the blocking times. However, it is essential to note that Bitcoin's blocking time remains relatively coherent to 10 minutes per block, which does not change even after a halving event occurs on the Ethereum network.

In conclusion, while Ethereum's halving reward can have significant effects on its price and blocking intervals, these changes do not translate directly into increased prices or longer transaction times for other cryptocurrencies such as Bitcoin. The panorama of cryptocurrency is constantly evolving and new developments will probably modulate the future of the networks with which we interact.