In its gradual process of transition to Ethereum 2.0 and a proof of stake (PoS) consensus mechanism, Ethereum (ETH) could get its upgrade in London on or around August 4, when a number of changes will go into effect, including the much-anticipated Ethereum Improvement Proposal (EIP) 1559 intended to revamp the monetary system of the networks.
The main Ethereum developers have offers block 12,965,000 for the mainline activation of the London network upgrade, which is scheduled to take place on August 4 (UTC).
Yes, unless someone objects to it in the next 24 hours, London is expected to land on August 4th.
EIP-1559 is one of the changes in Ethereum that many are eagerly awaiting, even though it has seen even a minor voice before. opposition to its implementation.
Why is this so important? It will divide the transaction fee into two parts: the tip which can be set by the user and a base fee which will be burned. Some ETH supporters find this burning of fees will turn it into a deflationary crypto-asset and make it a serious valuable rival for Bitcoin (BTC).
However, it is pertinent to note that there is no clear answer here as to when exactly this could happen. As reported, this change may not happen as quickly as some might think, with Ethereum needing to fully switch to PoS before the deflationary aspect of EIP-1559 really kicks in. Some also argue that there may not be enough traffic on Ethereum for token burns to outpace inflation.
“ETH will not immediately become deflationary as proof of work will continue to produce net inflation until Ethereum switches to proof of stake this year,” said developer Ryan Berckmans. Cryptonews.com recently.
It also doesn’t aim to cut costs despite what many have claimed. “When [ETH] the price increases your [transaction fees] are [gonna] go waaaay up, ” MaCrypto founder Taylor Monahan claims. Additionally, according to developer James Hancock, EIP-1559 reduces overpaid transaction fees, not fees.
In either case, however, this is not the only PIE in the London package. Among other things, he also includes:
- EIP-3529, which helps compensate for some of the additional block size variance introduced by EIP-1559, which allows the block to use up to twice the current gas limit;
- EIP-3541, which paves the way for broader enhancements to the Ethereum Virtual Machine (EVM);
- EIP-3554, which delays the bomb of difficulty, aka the Ice Age, on December 1.
Developers start testing the London upgrade (previously scheduled for July) on Ropsten’s testnet on June 24, but ETH users were again encouraged to “adjust expectations”. Speaking of fee issues, Monahan, for example, pointed out that users do not know “with enough certainty” the final cost, or the period over which what they send will (or will) be delivered. with success.
At 09:19 UTC, ETH is trading at $ 2,377 and is up 3% in one day and almost 10% in a week, reducing its monthly losses to 12%.
– What does EIP 1559 bring to the Ethereum table?
– Ethereum begins testing London upgrade – but ‘adjust your expectations’