No one knows the Ethereum network upgrade better than Tim Beiko. As a developer of the Ethereum Foundation, Beiko is responsible for hosting core developer meetings and playing a role in the upcoming London hard fork.
The Ethereum London upgrade is expected to go live on August 4th. This is an important network upgrade that includes five Ethereum Improvement Proposals (EIP). These proposals are code changes and must be agreed by stakeholders.
However, although people may have heard of some reports of the London hard fork, especially the highly anticipated EIP-1559, they may not know what else there is.
Beiko participated in The Decrypt Daily podcast on Wednesday to share more information about the hard fork and further shared information about these changes.
The most exciting and controversial change in the London upgrade is EIP-1559. EIP 1559 includes two components. First, it adds a base fee for each transaction on the Ethereum blockchain. Beiko said that although this sounds cumbersome, EIP 1559 should actually have the effect of reducing overall transaction costs because it “can help you better estimate costs.” The current system relies on a real-time auction to drive transactions, which means people may pay more.
Beiko said that EIP 1559 is important, but it will not bring about a radical change: “You can think of it as a reduction of 20%, but not a reduction of 20 times.”
The second aspect of EIP-1559 is that fees are no longer paid to miners, who are people who run verification and process transactions around the world. Instead, the fee will be burned, which means the ETH is sent to an inaccessible address. By removing coins from circulation, this creates what Beiko calls “network deflationary pressure”. In other words, as the supply becomes more limited, the price of ETH may rise.
EIP-3198 is called “Sister Proposal of EIP 1559” by Beiko, which essentially extends the user experience improvement of EIP 1559 to smart contracts. Smart contracts are pieces of computer code that execute instructions on the Ethereum blockchain. For example, they enable decentralized finance (DeFi) applications to cut off middlemen while offering people loans or interest.
With EIP-3198, transactions using smart contracts should no longer be charged.
Although EIP-1559 occupies most of the attention, EIP-3529 may have an equally large impact on the network. According to Beiko, the proposal “cancelled the refund of certain opcodes.” He then explained the content behind this EIP in simple English.
Currently on Ethereum, when you clean up after using the network, you can get a refund of gas. Gas refers to the fee paid for the transaction. After all, smart contracts and related data can block the network.
Although the gas refund for cleaning sounds good in practice, Beiko said, “What we have seen in practice is that most refunds are not used for this. They are used when the gas cost on the network becomes lower. At times, people will fill up the network with junk data. Then when the gas fee is high, they will delete all junk data and get back these refunds.”
He said that canceling or reducing refunds through EIP-3529 will make the network more stable.
In Beiko’s words, EIP-3541 “does not do much by itself”. It mainly lays the foundation for future updates and reserves some space in the network to create new types of smart contracts. “Adding new features to the [Ethereum Virtual Machine] without breaking anything is like a clever trick,” he said.
Looking forward to publishing an appropriate blog post tomorrow, but if you are eager to update your Ethereum node for London as soon as possible, then all teams now have a version compatible with the mainnet available
— Tim Beiko | timbeiko.eth ?? (@TimBeiko) July 14, 2021
Beiko did not mention the EIP 3554 included in the London fork, probably because this EIP has become a standard part of the Ethereum hard fork. EIP-3554 postponed the so-called “difficulty bomb” to December 2021. The bomb actually increases the difficulty of miners who are competing to solve complex cryptographic problems and earn ETH. The result is that the network will slow down.
In fact, the bomb was deliberately placed there in 2015, with the purpose of inspiring developers to abandon mining altogether and switch to PoS. As Ethereum 2.0 has not yet been fully put into use, the blockchain will take this step, from Proof of Work (PoW) to Proof of Stake (PoS). In this case, people will pledge their ETH to the network. Ensure its safety.
EIP-3554 basically eliminated this bomb, giving developers more time to develop ETH2.
Once we enter the era of ETH2, many of these code changes will become irrelevant.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/not-only-the-eip-1559-ethereum-london-upgrade-but-also-these-proposals-that-need-attention/
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