October 25, 2020

Opinion: Ethereum hard fork harms Aragon and Kyber Network projects

Upcoming Ethereum network upgrade called Istanbul will lead to disruptions to many decentralized applications (dApps). This opinion in a conversation with CoinDesk was expressed by the technical director of Aragon One Jorge Ischierdo.

In particular, he said, the work of about 680 smart contracts involved to manage dApps on the Ethereum blockchain in the Aragon infrastructure will be disrupted.

“Until that time, decentralized organizations (DAOs) could transfer ETH to each other. This will become impossible after the Istanbul hard fork. ”Isquierdo curled.

Representatives of the Kyber Network Ethereum token exchange platform noted that in their case, a hard fork will affect only one smart contract.

Problems associated with the implementation of the proposal forImprovement of Ethereum (EIP) 1884, designed to protect the network from congestion and ensure its stable growth, however, increasing the cost of gas for three resource-intensive operations. The costs for the so-called SLOAD operation will grow the most - from 200 to 800 gas units. In essence, this will be the main cause of problems with the execution of Aragon smart contracts.

“In one of the transactions, we really involved a lot of SLOAD operations. Therefore, after the activation of Istanbul, the price of most of our operations will increase by 30% ”, - representatives of Kyber Network added.

Back in 2016, the cost of SLOAD operationsincreased significantly - from 50 to 200 units of gas. However, Ethereum users were much less then and the market price of the ETH coin was much lower. In the current environment, confident in Kyber Network, another wave of SLOAD cost growth could have a significant impact on users and developers.

Recall, the activation of Istanbul in the test broadcast network should take place approximately on October 2.