Ethereum’s London hard fork is expected to arrive on Thursday, ushering in EIP-1559

Cryptocurency

Ethereum’s London upgrade is set to activate on Thursday, according to the countdown available on Ethereum.org. “The London upgrade is scheduled to go live on Ethereum in August 2021, on block 12,965,000,” Ethereum.org reads. “It will introduce EIP-1559, which reforms the transaction fee market, along with changes to how gas refunds are handled and the Ice Age schedule.”

Ethereum Improvement Proposal 1559, or EIP-1559, will directly affect how the network handles transaction fees. Going forward, each transaction will burn a base fee, thereby decreasing the asset’s circulating supply, and give users the option of including a tip to help incentivize speedier confirmations proportionate to network demand. The London fork will also introduce other EIPs, such as EIP-3541, according to a blog post from the Ethereum Foundation in mid July.

Twitter user korpi pointed out a number of notable points regarding EIP-1559 in a tweet thread on Monday.

“What everyone is excited about is $ETH burn,” korpi said in the tweet thread after discussing a number of other points regarding the Ethereum upgrade. Korpi added:

“After EIP-1559 part of the transaction fee is burned and removed from circulation. But it doesn’t mean that ETH immediately becomes a deflationary asset. For that to happen ETH burned must be higher than ETH issued in block rewards.”

Ethereum’s London hard fork is part of its Ethereum 2.0 journey — which will ultimately change the network’s consensus algorithm from proof-of-work, or PoW, to proof-of-stake, or PoS.

Products You May Like

Articles You May Like

California Governor Newsom Vetoes Bill to Regulate Crypto — Calls for ‘More Flexible Approach’
Market manipulation claims will be hardest ‘nut to crack’ in Bitcoin ETF approval — WisdomTree
Biden’s anemic crypto framework offered us nothing new
Global Manhunt for Terra Luna Founder Do Kwon After Interpol Issues Red Notice
Bitcoin, Ethereum Technical Analysis: BTC Below $19,000 as Sentiment in Crypto Remains Bearish

Leave a Reply

Your email address will not be published.