The cryptocurrency market is moving northward this days, however, it is important to discuss what is behind the recent bullish run. Ethereum, the second altcoin by market capitalization is also witnessing the same. The altcoin has risen far above $600, and now switches a little below $640 as at the time of writing this article. According to observers, the surprising move could be linked to this weekend’s parity vote which ends tomorrow.
Dubbed as ‘the most fascinating vote in the history of cryptocurrency’ by analyst, the on-going vote has 7 days span. The reason behind the vote is whether the Parity’s 500,000 eth that was mistakenly frozen because of a noticed bug on Parity’s multi-sig should be returned or confiscated. Now 55.6% of Ethereum HODLers are in support of the restoration, while 44.4% do not want it restored. If the yes have it, there will be no choice than to return the fund to Parity.
The question at hand now is that does the ongoing Parity vote have effect on the price of Ethereum in the market or will it add to the value as time goes on.
It is worthy to note that the cryptocurrency space is currently witnessing a boom, it cannot be categorically stated that Ethereum is up in the sky because of the Parity vote. Considering the recent favourable news that Ethereum community have received, the increased value of Ethereum cannot be linked to Parity alone. Until the vote ends, and the fund is returned, it is hard to say that the massive hick in price is because of the vote. However, if the fund is returned, it shows that the users of Ethereum controls the future of the blockchain, and hence, may bring good name to Ethereum. This will translates to a market boom.
How Did The Freeze Happened?
Parity is an Ethereum software client. A code flaw in the software resulted in freezing of $160 million worth of Ether on Monday November 6th 2017. The freeze caused distress and anxiety to the community and affected around 500 eth wallet.
According to the team behind Parity, “a vulnerability in the “library” smart contract code, deployed as a shared component of all Parity multi-sig wallets deployed after July 20th 2017, was found by an anonymous user. The user decided to exploit this vulnerability and made himself the “owner” of the library contract.”
“The user destructed this component. Since Parity multi-signature wallets depend on this component, this action blocked funds in 587 wallets holding a total amount of 513,774.16 Ether as well as additional tokens. Subsequent to destroying the library component, someone (purportedly this same user) posted under the username of “devops199” issue #6995 that prompted our investigation into this matter.”
If the fund is returned, it is going to relieve the team behind Parity and give the Ethereum community a major boost, hopefully.