The Ethereum Hard Fork, London, is now available. The London fork took place on August 5 at 12.33 pm UTC Thursday at a block height of 12,965,000. The fork enabled the Ethereum 1559 upgrade proposal. Some members of the Ethereum community shared and celebrated the news via Twitter.
This update is one of the most important for the network. Since it will bring significant changes in transaction fees and gas refunds. This will be possible thanks to EIP 1559, which will involve burning the base fee and reducing the total number of ETH in circulation.
The network has faced multiple problems, from gas rates to escalation in the past, but this would help relieve some pressure on the network. While EIP-1559 will not exactly reduce transaction costs. If it will make the cost of a transaction more predictable and possibly result in reduced costs for users.
The improvement will allow users to better estimate how much a transaction actually costs. This means that instead of blindly buffering a transaction with additional gas to ensure that the miners process the transaction, users can be more precise in their estimates. So, in a sense, it will reduce network operating costs.
Ethereum price rose after the fork
The price of the second-largest cryptocurrency by market cap, Ethereum surged in digital asset markets on Thursday after the ‘London hard fork’ of the Ethereum blockchain went live. Cryptocurrency analysts are now evaluating the impact of the network upgrade.
At the time of this writing, Ethereum was trading at $ 2,828 (3.61%) according to our Crypto Online tool. Thus registering a bullish growth in the last 24 hours.
Now, it is important to note that in addition to EIP 1559, the update also contains five more EIPs that have also been implemented. These include EIPs 3554, 3529, 3198, and 3541, each of which aims to improve the user experiences and value proposition of the Ethereum network. While 1559 works on gas issues and transaction fees, 3554 delays the coded “difficulty bomb” to make mining difficult.
Meanwhile, 3529 will reduce gas rebates used to incentivize developers to reduce or eliminate unused smart contracts and addresses on the grid. The 3529 implementation will make some tokens like Chi and GST2 obsolete due to their low profit and the fact that they take up a lot of space.
EIP 3541 will require new smart contracts to be different machine codes than the existing 0xEF. Finally, EIP 3198 will help Ethereum client computers acquire the current value of the base fee.
A new era for Ether
The upgrade will also involve a major change: Transaction costs that were previously paid to miners will now be burned up and removed from circulation.
The way it works now is that the higher the fee a merchant offers on a transaction. The transaction is more likely to be blocked quickly.
Some proponents of Ethereum and the latest update argue that as more and more Ethereum is withdrawn from circulation, there will be something of a supply shortage. Which will make ETH a deflationary asset. They – including Ethereum co-founder and ConsenSys founder Joseph Lubin, and Beiko himself – have called this the “age of ultra-sound.”
As Ethereum embarks on a new journey, users may want to pay attention to the chain for a possible chain split. Especially if a significant group of miners, exchanges, and other network stakeholders don’t update their nodes.