After the Ethereum mainnet completes the London upgrade, V God says he is more confident in the merger of Ethereum

At 20:33 on the evening of August 5th, the Ethereum main network reached a block height of 12,965,000, activating the London hard fork network upgrade. This upgrade includes 5 Ethereum Improvement Proposals (EIP), namely EIP-1559 (handling fee improvement plan), EIP-3198 (BaseFee opcode), EIP-3529 (reduced gas refund), EIP-3541 (rejected) The creation of a new contract starting with the 0xEF byte to serve the Ethereum object format), EIP-3554 (delay the difficulty bomb until December this year).

Among them, EIP-1559 is the most anticipated place for this Ethereum upgrade, and it is also the biggest change introduced by the London upgrade. EIP-1559 is a proposal made by V God to reform the cryptocurrency charging system. Ethereum Improvement Proposals EIP stands for Ethereum Improvement Proposals describe the standards of the Ethereum platform, including core protocol specifications, client APIs and contract standards. Anyone can participate in the improvement of Ethereum by submitting a pull request for the improvement proposal to the Ethereum EIPs GitHub repository. If EIP is approved by the committee and finalized, it becomes an ERC. ERC is the abbreviation of Ethereum Request for Comments, which is the Ethereum General Opinion Solicitation Protocol.

For transactions that occur on Ethereum, the current charging scheme is an auction mechanism. The user bids, and the miner selects the transaction with the highest bid and packs it into the block. This method is simple and efficient, but there are some problems. First of all, it is difficult to predict how appropriate the bid is. There is no way for users to estimate the fuel costs they need to spend. Secondly, due to the gas limit per block and natural fluctuations in transaction volume, this may cause transactions to wait for several blocks before they can be packaged and entered. For users, it may cause delays. In addition, with the reduction of block rewards, high differences in handling fees may encourage “selfish” mining behavior. Therefore, EIP-1559 was proposed, which changed the payment structure and payment flow.

The setting of EIP-1559 is basic fee + tip. The basic fee will be destroyed and the miner will not be able to obtain it; the miner’s income is mainly the new block reward + tip. At the same time, there is a dynamic and scalable block size design to cope with instantaneous network congestion.

After this landmark upgrade went live, the price of ETH has risen significantly. Vitalik Buterin claimed in an interview that after the successful launch of the “London” hard fork, he “absolutely” had more confidence in the merger of Ethereum and Ethereum 2.0. V God said that after abandoning proof of work to switch to proof of equity, Ethereum’s energy consumption is expected to drop by more than 99%. It is reported that the full version of Ethereum 2.0, originally scheduled to be released in 2019, is expected to be released in 2022.

There is no shortage of voices optimistic about this upgrade in the market. Kyle Samani, co-founder of investment company Multicoin Capital, said: The London upgrade is one of the most interesting and important upgrades in the history of Ethereum. By reducing the supply of tokens, it can increase scarcity and increase prices.

The founder of Pantera Capital stated that the London upgrade will help Ethereum catch up with Bitcoin and make Ethereum more like a fixed asset.

Uniswap founder Hayden Adams tweeted two hours after the EIP-1559 upgrade went live: Uniswap has destroyed about 80 ETH. At this rate, Uniswap alone will destroy 350,000 ETH a year, worth nearly 1 billion U.S. dollars. He said that this upgrade is a big victory for Ethereum.

However, although the mainnet deployment of the Ethereum London upgrade has been completed, as of 8 o’clock on August 6th, Beijing time, more than 10% of the Ethereum clients have not been upgraded.

There are also voices that once the gas cost reaches the final upper limit of 25M, miners can sort and pack according to the tip cost, similar to the current first price packaging. This may still cause some transactions to take precedence over others, thus invalidating the basic fee model for this upgrade.

It is worth mentioning that before the upgrade, Qiu Xiaodong, head of the Spark Pool Market, expressed opposition and pointed out that the current EIP 1559 does not save much on the transaction performance and the handling fees for participating in DeFi. We still insist on our opposition, but the result is essentially unstoppable. Our position remains the same, but the result will certainly not change. We just say that we expect its launch to let DeFi users clearly know what BaseFee is and what miner tips are.


Posted by:CoinYuppie,Reprinted with attribution to:
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