ETHEREUM LONDON HARD FORK (Ethereum Improvement Protocol 1559)
A major change is coming to Ethereum blockchain network. It’s been dubbed the London hard fork
A hotly anticipated upgrade is coming to the Ethereum network that will change the way transaction fees work and start to destroy coins. It had been scheduled for august 4 but was delayed slightly. The change is technically known as Ethereum Improvement Protocol 1559, or EIP-1559.
Reduction of ethereum gas fees
The problem with the Ethereum network is that fees are too high and highly volatile making not user friendly. The network uses a bid system where miners bid for the transaction, the problem comes when the traffic is high the prices skyrocket making it expensive to transact. With the hard fork it will stabilize the fees to a predictable level that is not volatile.
Increase in value
EIP-1559 is a good thing since it will destroy or burn ether of the network. The miners do not receive a base fee which would make them artificially congest the network to keep the prices high. This option is destroyed through the burn. This will lead to a reduction in the supply thus making it surge in value as ,ore coins are reduced from circulation. This has made more commentators and analyst bullish about the future of Ethereum
Way forward in the future for ethereum
EIP-1559 is a small part of the upgrade, there is a bigger upgrade coming in 2022 as the network will be upgrading to Ethereum 2.0. this will be a complete overhaul of the entire infrastructure. This will see the network move from proof of work which is energy consuming to proof of stake where users will put forward ether to gain the right to verify transactions and earn coins. Ethereum 2.0 will allow scaling of the network by adding more side network and linking them together
