According to comments From EthHub founder Anthony Sassano, the London update of the Ethereum platform would go into action on August 4. Likewise, the possibility of a developers meeting emerged this week to discuss the implementation of the aforementioned hardfork and other important Blockchain readjustments.
It should be noted that this update includes the controversial EIP-1559. Thus, last March, the miners of this cryptocurrency called a protest against the update. It was considered “detrimental” to their income. Back then, the miners threatened to direct their hashing power to the Ethermine pool. With this, they would concentrate 51% of the processing in a single place, endangering the network.
The threats from the other side were immediate. According to an official Ethereum post, should a 51% attack occur, the network would rapidly transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS). In other words, the mining of that cryptocurrency would be eliminated to move to Ethereum 2.0 earlier than expected. So far, the level of annoyance has not decreased.
What does the London update represent for the Ethereum network?
The London update is not a simple change of shape, but a total turnaround to the Ethereum Blockchain network. In this sense, it seeks to solve the classic bottleneck problems and exaggerated commissions for transactions carried out on this network.
However, for miners this is not entirely good news. This is because it significantly reduces the profits of these with the decrease in commissions. It does not mean that high commissions will disappear, but that they will be more “rational.” But the result of these commissions will not go to the wallets of the miners, but to those of Ethereum.
As soon as Ethereum receives the commissions, they will be “burned”. It is a strategy of the developers to decrease the supply in the market and boost the price of the cryptocurrency. Generally speaking, practically the entire Ethereum community, except for the miners, supports the update.
On the other hand, it should be taken into account that it has been postponed on several occasions. Now, according to the aforementioned Sassano, it would take place in early August. Everything will depend, he said, on the meeting of the developers that would be held, according to him, no later than Friday.
Key point of the transition to ETH 2.0
It should be noted that the London update represents a turning point in the transition from PoW to PoS. With the new mode of the network, the generation of Ether, it will not be an exclusive process of mining, but through Stake.
This consensus mechanism consists of placing a certain amount of Ether in a wallet as a guarantee. It could be selected by the network to process blocks. There are many cryptocurrencies that work with this modality. However, Ethereum will do it in a hybrid way, at least for a while.
Traditional mining with the PoW will continue, but its privileges will begin to diminish over time until it is extinguished.
On the other hand, it should be remembered that the Ethereum network has carried out several tests prior to the London update. The main one, the Berlin last April. The Enhancement Proposals (EIP) are intended to pave the way for Serenity (ETH 2.0) planned for 2022. Aside from EIP-1559, which has already been discussed, is EIP-3554.
The latter is intended to make a smooth transition to PoS.