For some time, the update of Ethereum 2.0, called London, has been announced, which could represent a paradigm shift due to the series of improvements it incorporates and its influence on the future of Ethereum; this update incorporates certain modifications that are aimed at reducing network congestion, improve security, lower operating costs, among other improvements.
On August 4, 2021, the long-awaited update of Ethereum began, which has the pseudonym London and is also known as EIP -1559 (the acronym EIP stands for Ethereum Improvement Proposal). This hard fork is important for the Ethereum ecosystem and is considered a kind of “catalyst” for the cryptocurrency industry.
The EIP-1559 is a proposal for improvements proposed to solve the inconvenience caused by the high prices of fees in Ethereum operations and the congestion of its network; the proposal represents a drastic change within the proof-of-work (PoW) system that still exists in the mining of Ether (ETH) or Ethereum cryptocurrency.
EIP-1559 will replace Ethereum’s “first-price auction” rate model with a “base rate” that can be adjusted according to demand. This measure aims to significantly reduce transaction fees for users (a fairly common problem in the last year). This means that the miner will now receive a lower reward for his contribution to the Ethereum blockchain. Consequently, the fees on Ethereum will drop considerably; however, this news will also cause some discontent in some miners.
With the EIP-1559 update, it will be possible to have a higher level of security in the network; an example of this is the reduction (in the long term) of denial of service (DOS) attacks because to attack this type, a greater amount of resources will be required. Denial of service attacks is those that, in various ways, manage to make a service or resources on a network or system inaccessible to users.
The EIP-1559 aspires to change or migrate the Ether (ETH) towards a deflationary token (instead of being inflationary) which will give greater value and support to the cryptocurrency; as a result of this improvement, many users wonder if After the EIP-1559 was implemented, Ethereum could come to compete with Bitcoin as a haven asset. People related to the crypto industry believe that this could be a “Halving” of Ethereum, making the cryptocurrency increase in value considerably.
We will have to wait for the London update of Ethereum to be fully implemented to see its effects since it is still too early to see its influence on the entire network. However, what is certain is that this improvement will help scalability and Ethereum growth considerably in the long term.
What do you think about this topic? Do you think this update represents a significant improvement to the way Ethereum works?
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