Ethereum, the world’s second-largest cryptocurrency, has undergone the largest update ever and has significantly changed certain core aspects of the blockchain. This is called the Ethereum London Hard Fork and is intended to bring stability to the network and address issues related to unpredictable rates and slow transactions. Now, if you want to hear about this hype but controversial change and learn more, you’re in the right place. This article explained what the “Ethereum London” hard fork is and how it differs from the original version.
- 1 Ethereum London Hard Fork: Explanation! (2021)
- 1.1 What is the Ethereum London Hard Fork?
- 1.2 Benefits of the Ethereum London Hard Fork
- 1.3 Why is the Ethereum London Hard Fork controversial?
- 1.4 Does a hard fork cause the Ethereum blockchain to split?
- 1.5 Road to Ethereum
- 2 Ethereum London Hard Fork is now live!
Ethereum London Hard Fork: Explanation! (2021)
Simply put, the latest updates reduce transaction fee volatility and improve the efficiency of the fee market. But, as is often the case with these major updates, we are faced with bitter criticism from the section of miners who believe that changes reduce their profitability. Check both sides of the discussion to learn about the advantages and disadvantages of Ethereum London. It also describes how hard forks affect transactions on the ether network. So let’s get started without any further effort.
What is the Ethereum London Hard Fork?
Ethereum London, or London Hardfolk, is a collective term for the latest updates to the Ethereum blockchain.Proponents say it will Improve transaction speed and reliability On the platform. The Ethereum community is named after the British capital because it named the hard fork after the city where the Devcons (International Conference of Developers) is held.
The update itself contains 5 Ethereum improvement proposal (Or EIP), EIP 3554, EIP 3529, EIP 3198, EIP 3541, and EIP 1559. This is the last one that has caused the greatest controversy and has received worldwide attention. The Ethereum Foundation claims that this update will improve the experience for Ether users, but many miners believe that this update will have a negative impact on users. Many mines say it will reduce revenue from transaction fees.
First proposed in 2018 by Ethereum co-founder Vitalik Buterin, EIP 1559 was released on Thursday, August 5, 2021 in block 12,965,000. It is expected to make the Ethereum toll market more predictable and reduce network congestion. However, one of the main issues is the significant reduction in transaction fees (or gas prices). This has so far been the best way for miners to make money from networks. EIP 1559 does not promise to reduce transaction fees, but unlike the current settings, it has a cap.
Another big change in the new update is Twice the block size.. This means that there can be twice as many transactions in each block. The Ethereum Foundation states that this change aims to reduce random spikes in demand and thereby stabilize transaction fees. It also reduces network congestion, speeds up transactions, and makes the platform more attractive to end users.
Matt Hougan, Chief Investment Officer of Bitwise Asset Management, spoke with CNBC about London’s hard forks, especially the EIP1559. “It’s a really elegant design solution to the problems that Ethereum has been plagued with since its inception.”..
Benefits of the Ethereum London Hard Fork
Increased transaction speed
The biggest advantage of this update is that it can significantly speed up transactions on the Ethereum network, thereby significantly increasing the number of transactions per second.Industry insiders and stakeholders will also be able to expand Reduce high “gas charges” from now on.
Reliable transaction fees
To implement a lower tariff, the new standard “Burn” BASE FEE into your network Instead of using an existing blind auction system. Miners will make money from the new system, but transaction fees will be more reliable for end users.
Reducing network congestion
London’s hard fork also promises to reduce network congestion on the Ethereum blockchain. Extensive congestion has become a major concern in recent years. In addition, the astronomical growth of DeFi apps such as Uniswap and Pancake Swap only exacerbated the problem. With the daily proliferation of DeFi applications and services, network congestion will only increase in the future.
The London Hard Fork aims to address this situation by simplifying transactions while reducing congestion.Updates too Add deflationary mechanism to ether, Will be more valuable in the long run.
Why is the Ethereum London Hard Fork controversial?
London’s hard fork promises to make a lot of positive changes to its users, but it has been severely criticized by the majority of Ethereum miners.They believe Moving to the transaction fee cap will significantly reduce your income From the Ether network.
Following the latest update, Ether, which is usually sent to miners as part of the transaction fee, will be burned or destroyed. Not surprisingly, this caused many mining co-operative hackles. They believe that they leave only one source of income instead of two.
first, Miners can still receive “tips” Instead of transaction fees from users trying to jump the queue. You can also sell your computing power to the network to earn Ether if you win the block. However, none of them make as much money to miners as transaction fees in the short term.
Another concern expressed by many miners is that new models may one day make them obsolete. With the impending transition of Proof of Stake, miners fear that the entire Ethereum industry could be confused next year. And well, the latest updates haven’t done anything to calm those fears.
Does a hard fork cause the Ethereum blockchain to split?
Protests from the collective Ethereum mining lobby are so noisy and persistent that some observers, as they did with Bitcoin, went to Ethereum London, which ultimately led to divisions within the community. Expressing fear.
Following the activation of London’s hard fork, dissatisfied miners Reject the update and continue to use the old system.. It can lead to the division of the Ethereum community. However, the rebel user base will be significantly reduced as the majority of users will switch to updated versions.
For now, it is not immediately clear whether miner anxiety will lead to division. However, given the significant decline in the user base, some observers Split may not be very beneficial As it is made to be. At the moment, Ethereum users don’t know what the future holds. However, since EIP 1559, miners are expected to lose up to half of their transaction fees, so it’s unlikely they’ve heard the end of the story.
Road to Ethereum
The Ethereum Foundation’s decision to abolish unreliable and constantly changing transaction fees is a significant opportunity for Ethereum networks and crypto enthusiasts, but it has been around for some time. London hard fork Ethereum Casper Upgrade As part of the Ethereum 2.0 overhaul. Switch the network’s current “proof of work” algorithm to “proof of stake” to reduce energy costs and improve network stability.
The new protocol Implement a method called “sharding” This can increase transaction speeds to a whopping 100,000 transactions per second. This is a major upgrade from just 30 transactions that the network can currently handle per second. It also promises to reduce the transaction costs of the Ethereum network and make it more familiar to mainstream users. For Ethereum miners, the Proof of Stake model allows you to “stake” your inventory into a “stake pool” and earn rewards.
If the switch to Ethereum 2.0 is successful, Ethereum’s huge DeFi ecosystem will help reduce the catastrophic overcrowding that currently makes the system nearly unusable. It is not yet known when the switch will eventually take place, but the Ethereum Foundation says it plans to complete the process sometime in 2022.
Ethereum London Hard Fork is now live!
Ethereum London’s hard forks promise to make life easier for users, but many miners look red. Especially when the deadline for EIP-3554 is approaching, it will be interesting to see if the dissatisfaction will ultimately lead to the split of the Ethereum blockchain. Meanwhile, now that we understand Ethereum London and what it means to our users, we’ve got everything related to other cryptocurrencies, including how to farm Chia coins on your PC and everything about BitCloud, the hottest new crypto social network. Check out the article.