Not surprisingly, when the block height of the Ethereum network reaches 12,965,000, at about 20 o’clock on August 5th, Beijing time, we will usher in the Ethereum London hard fork upgrade.
Since the Ethereum secondary market has reached thousands of dollars, many top capitals, KOLs, and even securities have written research reports to discuss and imagine whether the value of Ethereum can exceed Bitcoin. Among the arguments they listed, the London upgrade on August 5th is one of them.
For this decentralized network with the world’s second largest market value and the richest ecosystem, this is the most important system update in recent years, and it is also the most critical upgrade before Ethereum iterates to Ethereum 2.0. Because in this update, 5 community proposals (EIP) will be embedded in the code of the Ethereum network, and the implementation of EIP-1559 is the absolute protagonist. The transaction logic that has existed since the birth of Ethereum has been completely changed with the emergence of EIP-1559.
In the Ethereum network, the transaction initiated by the user needs to be packaged by the miner to complete, and when multiple transactions appear in front of the miner together, the miner follows the bidding logic, that is, which user gives the miner more money (gas fee), then pack it first Whose deal. This has not changed in the 6 years of Ethereum.
But the problem is that when the number of users increases, the more transactions on the Ethereum network, the higher the gas fees that users need to give, in order to successfully enter the block, users start Gas War.
EIP-1559 is a proposal to improve the Ethereum transaction fee mechanism jointly proposed by Ethereum co-founder Vitalik Buterin and ethhub_io founder Eric Conner. In August 2018, Vitalik published a paper Blockchain Resource Pricing, which explained the problems of the existing transaction fee mechanism from an economic perspective, and proposed a prototype of the solution. Since then, in the ZCash community, Vitalik has further refined the plan. At the Ethereum Core Devs Eth1x/Istanbul Planning Meeting held in 2019, Vitalik introduced the research background, objectives and mechanism of EIP1559. Since the adjustment of the transaction fee mechanism will affect the main stakeholder groups of Ethereum (users, developers, miners, wallets, etc.), the EIP-1559 proposal will not be realized until the London upgrade in 2021, three years later. As the research background involves more complicated economics, Rhythm BlockBeats sorted out the main mechanism of the proposal and its impact on the Ethereum network.
In essence, EIP-1559 divides Gas fees into two parts. One part is the “base fee” that must be paid for each transaction based on the basic fee of the previous block and the resource utilization rate of the block. The other part It is the “Priority fee” (Priority fee) that is selectively paid by the user.
For the basic rate, when the utilization rate of the previous block is higher than 50%, the basic rate will increase; when the utilization rate is lower than 50%, the basic rate will decrease, and users cannot adjust the basic rate. The basic fee will be permanently destroyed by the network.
When a user initiates a transaction, in addition to the basic fee, he also needs to pay a priority fee to the miner. The function of the priority fee is to compensate miners for the increased risk of uncle blocks due to the inclusion of transactions in the block. At the same time, for users who want the transaction to be executed as soon as possible, they can set a high priority fee to ensure that the transaction is included immediately.
In the opinion of most people, the implementation of EIP-1559 is beneficial to the economic level of the Ethereum network and user experience.
From an economic perspective, since each transaction requires a portion of ETH to be destroyed, this means that the more economic activities that occur in the economy, the greater the amount of ETH destroyed. In other words, when the destruction rate is greater than the block reward issuance rate, Ethereum will enter a deflationary state.
As the head ecology of DeFi and NFT, Ethereum has unparalleled network activity, which also ensures that ETH will be continuously destroyed, thereby increasing the relative scarcity of assets, which is important for the value storage nature of assets. Said to be very advantageous. At the same time, when people continue to use the network, most users need to buy ETH from the open market, which guarantees a steady demand for ETH. On the other hand, selling orders, because the basic fee will be destroyed, miners only get priority fees and block rewards, which means that the natural selling pressure from miners has been greatly reduced.
From the perspective of user experience, users do not need to understand the transaction fee mechanism in depth, and only need to pay according to the estimation of the wallet to get the optimal rate and expected results, which undoubtedly enhances the user experience of Ethereum.
Of course, not everyone in the community agrees with the implementation of EIP-1559. Rhythm has counted the attitudes of mining pools to the proposal, and the opposing computing power accounted for more than 62%. Because in the long run, EIP-1559 deprived the group of miners of the opportunity to benefit from the success of Ethereum.
However, the implementation of the proposal will not be affected by the opposition of the mining pool, and the code will still be embedded as planned, so there is also a view that “Ethereum will fork”.
But at present, the probability of fork is not high. According to data from ethernode, 70.3% of clients are ready to support EIP-1559.
Other proposals that will be implemented in this upgrade
In addition to the much-watched EIP-1559, there are 4 other proposals that will be implemented in this upgrade. They are EIP-3198, EIP-3529, EIP-3541, and EIP-3554.
First, let’s take a look at EIP-3198. EIP-3198 aims to optimize the user experience of smart contracts and enhance the security of the second-tier network (State channels, Plasma, Optimistic Rollups, etc.) that implement “proof of fraud”. By adding an opcode, the EVM can know the current The base rate of the block.
EIP-3529 solves the current attack caused by the use of the gas return mechanism by removing the gas return of the contract SELFDESTRUCT and reducing the return gas of SSTORE, thereby releasing more block available resources. At the same time, this proposal also makes the once smashing Gas Token no longer useful.
EIP-3541 prohibits the deployment of codes starting with 0xEF bytes to facilitate further updates of Ethereum in the future, while EIP-3554 uses the delayed difficulty bomb to December 2021 to help developers better transition to Ethereum 2.0.
After the upgrade in London, the entire focus of the Ethereum community will be on the Ethereum 2.0 upgrade. In more detail, the merger of Ethereum 1.0 and the beacon chain will be the next highest priority operation, and this may last for many years. The most critical first step of the upgrade.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/ethereums-most-critical-upgrade-will-realize-5-community-proposals/
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