When Ethereum “London Upgrade” catches up with the market rebound

The Ethereum “London Upgrade” is ready and it is expected to be activated at the block height of 12965000. The official blog estimates that the time will be between August 3rd and 5th. The Chinese community predicts that the upgrade will be activated at 7pm on August 5th. .

Before this, it should be noted that the user who runs the node needs to lock the official blog again and update the client.

Affected by the positive stimulus of the “London Upgrade” approaching and the rebound in the crypto asset market, ETH gradually emerged from the market haze over the previous two months. The highest price in 24 hours reached US$2,695, an intraday increase of 5.53% and an increase of 13.42% on the 7th. Outperforms BTC.

The outside world pays so much attention to the upgrade of Ethereum because it is an important stage of Ethereum in the 1.0 era, and multiple proposals will bring network benefits after the upgrade. Among them, the EIP-1559 proposal to change the current mainnet fee of ETH 1.0 is particularly concerned, because objectively, this update will bring deflationary effects to the unlimited issuance of ETH.

The same effect is also available in the ETH pledge operation that began in November last year to prepare for Ethereum 2.0. As of July 31, OKLink data showed that the ETH locked in the ETH 2.0 pledge deposit address exceeded 6.47 million, and the pledge rate Reached 5.53%, which is a record high.

Update the client version before “London Upgrade”

The “London Upgrade” announcement issued by the Ethereum Foundation on July 15 has recently been updated. Developer Tim Beiko has once again clarified the upgrade time on the official blog and updated the version number of the client node.

“After successfully deploying the testnet, the London upgrade is now ready to be activated on the Ethereum mainnet. It will be launched at block 1,2965,000, and it is expected to be between August 3 and 5, 2021. “It should be noted that in order to communicate with London Upgrade compatible, node operators need to update the client version they are running.

These versions are different from the previously announced versions that support the London upgrade on the testnet. Node operators need to update the client before the mainnet is officially upgraded. Among them, the OpenEthereum client will be deprecated after the upgrade in London. “The OE team is working with Erigon Cooperation to provide users with a smooth transition path.” The official Ethereum blog post provides a download link for the new client.

When Ethereum "London Upgrade" catches up with the market rebound

Several client version changes

Based on the 13.5 second average block generation time of the Ethereum network, the Ethereum Chinese community predicts that the “London Upgrade” will be activated at 7pm on August 5.

The official Ethereum blog reminds that during the upgrade, if ETH holders are using exchanges, web wallets, mobile wallets or hardware wallets, unless the exchange or wallet service provider in use informs the user to take additional steps, what will the user do? No need to do.

And if you are a miner, then downloading the latest version of the Ethereum client and updating the settings is necessary. Failure to upgrade will cause the miner to stall on an incompatible chain that follows the old rules, and will not be able to send ETH or after the upgrade Operate on the Ethereum network.

After the new client is loaded, miners need to manually set the gas limit target to twice the current value, because once the London upgrade is deployed, the block size will double the current size, and EIP-1559 will maintain a block capacity of about 50 % Full. “For example, if you set the block size to 15m gas before the London upgrade, you will need to set the gas limit to 30m to keep the average number of transactions per block consistent. If you don’t modify the gas limit target at block 12965000, You will reduce the block size in the network.” The official blog provides specific APIs for each client, and miners can use them to update the gas limit target.

The rise in ETH 2.0 pledge rate implies market outlook

The “London Upgrade” happened during the recent rebound of the entire market. ETH’s gain surpassed that of BTC, indicating that the market is fulfilling this benefit.

As of 6:30 on August 2nd, ETH was quoted at US$2,644, an increase of 4.37% in 24 hours, an increase of 12.30% in the past 7 days, and an increase of 24.98% in the past 30 days. During the same period, BTC quoted at 40772 US dollars, a 24-hour increase of -2.19%, a recent 7-day increase of 5.67%, and a recent 30-day increase of 22.38%.

The strength of ETH reflects the market’s expectations for the “London Upgrade” of Ethereum. This expectation has resulted in multiple proposals affecting the benefits of the ETH 1.0 network due to the upgrade.

For example, the EIP-1559 proposal will improve the existing fee mechanism, and the basic fees paid by users will no longer be collected by the miners, but will be destroyed. This objectively brings about the deflationary effect of ETH; EIP-3529 proposal supports The contract deployer actively cleans up the contract and obtains a Gas refund, which will reduce network congestion and improve network stability; in addition, EIP-3541 will reject new addresses beginning with 0xEF bytes, laying the foundation for future upgrades; EIP-3554 The proposal delays the difficulty bomb until December 2021.

“London Upgrade” is not only a transitional solution to the pain points of the current Ethereum 1.0 network, such as high costs and frequent congestion, but also preparation for the future upgrade of Ethereum to 2.0. As the upgrade approaches, the pledge data of ETH 2.0 is also improving.

In November last year, the Ethereum development team completed the preparations for the deposit contract for the 2.0 “restructuring”, allowing users to pledge at least 32 ETH to become a verification node for the future 2.0 network. After the pledge, income returns can be obtained, but ETH and income are withdrawn. Settlement needs to be executed after 2.0 is completed. Before that, users could only follow the rule of “only pledge, not withdrawal”.

Even if the unlocking time is not clear enough and the conditions seem harsh, the 2.0 pledge activity has been on the rise so far.

When Ethereum "London Upgrade" catches up with the market rebound

The total amount of ETH2.0 pledge exceeds 6.4 million

According to OKLink data, as of July 31, the total number of pledges of ETH 2.0 has exceeded 6.4 million, which accounts for 5.53% of the total circulation of Ethereum, and the dual indicators have reached a record high. At present, the total number of validators has reached 20.15.19 million. With the recent rebound in the price of ETH, the total daily income of validators has risen to 1116.87 ETH, with an average daily income of 0.0055 ETH. Analysts at JPMorgan Chase have predicted that the PoW-to-PoS conversion of Ethereum 2.0 will allow the market in the form of Crypto Staking to grow to a scale of US$40 billion, and exchanges such as Coinbase will profit from it.

The pledge dynamics of ETH 2.0 has always been an important indicator for the outside world to observe the development of Ethereum and market expectations. Judging from the various data of pledge, the market’s expectations for Ethereum are still increasing, and 2.0 is still an important node.

Keeping pace with the times is the brightest shining point on the Ethereum network. When network congestion, high costs, energy consumption and other issues are criticized, the entire community, under the leadership of founder Vitalik Buterin, has upgraded and expanded Layer 2 on the one hand. To solve the key pain points of the 1.0 era, on the other hand, it is moving in the direction of completely solving the problem-opening the road of “restructuring” from PoW (Proof of Work) to PoS (Proof of Rights and Interests).

What will 2.0 bring?

“I think in the next 2 to 3 years, we will see that using Ethereum will become cheaper, we will see more different types of applications using Ethereum, and the Ethereum ecosystem will become more interesting. “This is Vitalik Buterin’s answer.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/when-ethereum-london-upgrade-catches-up-with-the-market-rebound/
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